Question

What is the final amount if 1885 is increased by 5% followed by a further 18% increase?

Give your answer rounded to 2 DP.

Answer 1

Answer = 2,335.52

Explanation:

Given amount : 1,885

Finding 5% of 1,885 = 0.05 * 1,885

5% of 1885 = 94.25

Now 1885 increased by 5% = 1,885 + 94.25= 1,979.25

Finding further 18% of 1,979.25 = 0.18 * 1,979.25

18% of 1979.25 = 356.265

Final amount = 1,979.25 + 356.265

Final Amount = 2,335.515

Now Rounding off the answer to 2 decimal points we get:

Answer = 2,335.52

(As the third digit after decimal is 5 so previous will be added b 1)