Question

John’s bank account increased in value from last year to those year by 8% to $250. If the account increases by the same percentage over the next year, what will be the value next year?

Answer 1

$270

Explanation:

We are given;

• The rate of increase is 8%
• The new amount is $250

We need to determine the value in the next year with the same rate of increase;

Therefore;

250% = 100%

New amount = 100 + 8 = 108%

Therefore;

New amount = (250 × 108)÷ 100

= $270

Therefore, the value in the next year is $270