Question

Fill in the missing number in this newspaper report:

Houses cost £100 000 one year ago
They now cost £

This is a 25% increase

How much does it now cost ?

Answer 1

£125000

Explanation:

Original cost of house = £100 000

Percent increase = 25%

Increase in price = 25% of 100,000

Increase in price = 0.25 * 100,000

Increase in price = 25000

New cost = original cost + Increment

New cost = 100,000 + 25,000

New cost = 125,000

Hence it now cost £125000