Final answer:
The new cost of a ticket after a 25% increase is calculated by finding 25% of the initial cost and then adding that to the original cost. For a $100 ticket, a 25% increase is $25, making the new cost $125.
Step-by-step explanation:
To calculate the new cost of a ticket after a 25% increase, one must first calculate the increase in price by finding 25% of the initial cost. Then, add this increase to the initial cost to find the new cost.
Step 1: Calculate the increase by using the formula: increase = (percentage increase / 100) × initial cost.
Step 2: Add the increase to the initial cost: new cost = initial cost + increase.
When examining the rise in cost of living, which is calculated as the percentage increase, you can see a similar process. To calculate the annual rate of inflation, find the percentage change in the cost of purchasing the overall basket of goods between two periods using the general equation for percentage change. This concept can also be applied to calculate the new ticket price after a 25% increase.
For example, if a ticket originally cost $100, a 25% increase would be $25 ($100 × 0.25), making the new cost $125 ($100 + $25).