Question

If there is 28% increase on a $5 item, then how much is the new cost for next year? Round to thenearest penny.Round your answer to 2 decimal places,

Answer 1

Given: There is 28% increase on a $5 item

To Determine: The new cost for the next year to the nearest penny

Solution

Step 1: Calculate the value of the increase

`\begin{gathered} increase=28\%*5 \\ Increase=0.28*5 \\ Increase=1.4 \end{gathered}`

Step 2: Calculate the new cost

`\begin{gathered} New\text{ cost = Old cost + Increase} \\ New\text{ }cost=5+1.4 \\ New\text{ }cost=6.40 \end{gathered}`

Hence, the new cost for the next year is $6.40