Question

Several years ago, Dirk bought some gold at a price of $710 per ounce. When he went to sell it, the gold was worth 60% more than it was when he purchased it. What was the new value of the gold?

Answer 1

$1,136 per ounce.

Explanation:

To find the new value of gold, you have to find what 60% of 710 is. You do this by converting 60% into a decimal and multiplying it by 710. This results in 0.6*710. 60% of 710 is 426. 426 + the original price of 710 is equal to 1,136.

You can also solve this problem in a condensed manner by multiplying 710 by 1.6: the 1.0 stands for the original price (710) so you don't have to add it later. The 0.6 stands for the 60% more. Multiplying 710 by 1.6 gets you 1,136, which is the new value of gold/ounce.