Find the percent of change from $40 to $50.
The Correct answer and Explanation is:
To calculate the percent of change from $40 to $50, follow these steps:
Step 1: Find the difference between the two values.
Subtract the original value from the new value:50−40=1050 – 40 = 1050−40=10
Step 2: Divide the difference by the original value.
Now, divide the difference by the original value (which is $40):1040=0.25\frac{10}{40} = 0.254010=0.25
Step 3: Convert the result to a percentage.
To convert the decimal result into a percentage, multiply by 100:0.25×100=25%0.25 \times 100 = 25\%0.25×100=25%
Thus, the percent of change from $40 to $50 is 25%.
Explanation
Percent change is a way to express the difference between an original value and a new value in terms of a percentage. This concept is widely used in finance, business, and everyday life to measure increases or decreases in quantities such as prices, profits, or other variables.
In this case, the original value is $40, and the new value is $50. The difference between the new and original values is $10, indicating that the value has increased. To determine what proportion this difference represents of the original value, we divide the difference ($10) by the original value ($40). This gives us 0.25, or 25%, after converting the decimal to a percentage.
The 25% change represents an increase, which is important contextually. If the value had decreased, the percent change would still be calculated the same way, but the result would reflect a negative percent change (i.e., a decrease).
Understanding percent change helps in making informed decisions about growth rates, price fluctuations, and other comparisons in various contexts. Whether it’s a salary increase, a change in stock prices, or a shift in the cost of goods, calculating percent change provides insight into the scale of the change relative to the original amount.