Question

The "off-peak" weekly average cost of hiring a caravan in Wales is £520.

In July the average cost increases to £800.
Calculate the percentage increase in cost.
Give your answer to 2 significant figures.

Answer 1

The original cost of hiring a caravan in Wales is £520, and the new cost in July is £800. To find the percentage increase in cost, we can use the following formula:

percentage increase = (new value - old value) / old value x 100%

Substituting the values given:

percentage increase = (800 - 520) / 520 x 100%

percentage increase = 280 / 520 x 100%

percentage increase = 53.85%

Therefore, the percentage increase in cost is 53.85%, which we can round to 2 significant figures as 54%.