Question

In 2013, selected automobiles had an average cost of $16,000. The average cost of those same automobiles is now $20,000. What was the rate of increase for these automobiles between the two time periods

Answer 1

25%

Explanation:

The average cost of the automobile in 2013 is $16,000

The present cost now is $20,000

Therefore the rate of increase between the two automobiles can be calculated as follows

= 20,000-16,000/16,000

= 4,000/16,000

= 0.25×100

= 25%

Hence the rate of increase is 25%