Question

Sally has $200 in her savings account last month. She added $35 this month and earned $0.75 interest. What is the percent of the increase in the amount in her savings account to the nearest tenth percent? *

Answer 1

The percentage increase in the amount in her savings is 17.9%

Explanation:

The formula for percentage increase is given as,

`Percentage\:Increase=(New\:Value-Old\:Value)/(Old\:Value)`

In previous month, amount of saving in Sally’s account was $200.

In the current month she added $35 and earned an interest of $0.75. So the total earning in current month will be,

Total earning = Amount in previous month + Amount added + Interest earned

Total earning = $ 200 + $ 35 + $ 0.75

Total earning = $235.75

So, current month amount of saving in account is $ 235.75 which becomes new value and previous month balance that is $ 200 becomes old amount.

Therefore, New value = $ 235.75 and Old value = $ 200

Substituting the values in the formula,

`Percentage\:Increase=(235.75-200)/(200)`

`Percentage\:Increase=(35.75)/(200)`

`Percentage\:Increase=0.17875`

`Percentage\:Increase=17.875`

Rounding to nearest tenth means one digit after the decimal place. So, percentage increase is 17.9 %