Question

$15 a share. A month later, it was
selling at $27 a share. What is
the percent increase?

Answer 1

Answer: 0.555555556

Explanation:

15/27=0.555555556

Checking work by plugging it in: 27x0.555555556=15

Answer 2

Answer: 80% increase

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Work Shown:

a = old value = 15

b = new value = 27

c = change in values

c = b-a

c = 27-15

c = 12

The positive c value tells us that we have an increase.

Then divide over the starting value a = 15

c/a = 12/15 = 0.80

Move the decimal point two spots to the right to go from 0.80 to 80%

Or multiply 0.80 with 100% to get 0.80*100% = 80%

We have a percent increase of 80%

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Check:

80% of 15 = 0.80*15 = 12

If the stock increases by 80%, then it has increased by $12 to go from $15 a share to 15+12 = 27 dollars a share. This confirms the answer.

A slight shortcut would be to say 1.80*15 = 27

The multiplier 1.80 represents an increase of 80% since 100% + 80% = 1 + 0.80 = 1.80