Question

In 1978, the amount of earnings required to earn one Social Security credit was $250. Thirty-eight years later, in 2016, the amount was $1260. What was the percent increase in the amount required to earn a credit over this 38-year span?

Answer 1

404%

Explanation:

To find the percentage difference do the following: (FV - SV)/|SV| * 100

(1260 - 250)/|250| * 100 {Subtract 250 from 1260 to get 1010. The absolute value of 250 is 250.}

1010/250 * 100 {Divide 1010 by 250 to get 4.04, or 101/25.}

101/25 * 100/1 {CROSS CANCELLATION}

101 * 4 {Multiply 4 by 101 to get 404.}

404%

The percent increase in the amount required to earn a credit over 38 years is 404%.