Question

Jasmine invests £250 in a building society. After the first year her account

contains £262.50. After the second year it contains £280.88. Calculate the
percentage increase of the amount in her account:
(a) during the first year.
(b) during the second year.
(c) over the two years.
Give your ansivers correct to 2 decimal places

Answer 1

(a) 5.00%

(b) 7.00%

(c) 12.35%

Explanation:

(a) Find the difference, in £, between the value after the first year and the original value. Divide that by the original value and multiply by 100:

`262.50-250=12.50\\\\(12.5)/(250)*100= (125)/(25)=5.00\%`

(b) Find the difference, in £, between the value after the second year and the value after the first year. Divide that by the value after the first year and multiply by 100:

`280.88-262.50=18.38\\\\(18.38)/(262.50)*100= 7.0019\%=7.00\%`

(c) Find the difference, in £, between the value after the second year and the original value. Divide that by the original and multiply by 100:

`280.88-250=30.88\\\\(30.88)/(250)*100= 12.352\%=12.35\%`