Question

A new product price is increased from $5 to $6. What is the percent of change?

Answer 1

20%

Explanation:

$5 to $6 is a $1 increase

Divide by old value: $1/$5=.2=20%
To check: $5 times 1.2 (120%)=6

2nd Method:

Divide by new vlaue: $6/$5=1.2

1.2=120%

120%-100%=20%

Answer 2

Step 1: $5 to $6 is a $1 increase

Step 2: Divide by the old value: $1/$5 = 0.2

Step 3: Convert 0.2 to percentage: 0.2×100 = 20% rise.

Or you could do it this way:

Step 1: Divide new value by old value: $6/$5 = 1.2

Step 2: Convert to percentage: 1.2×100 = 120% (i.e. $6 is 120% of $5)

Step 3: Subtract 100%: 120% − 100% = 20%, and that means a 20% rise.