Katherine pays
40 per month. What was the percentage increase in her monthly fee?
The Correct Answer and Explanation is:
To accurately calculate the percentage increase in Katherine’s monthly fee, we need both:
- The original amount she used to pay, and
- The new amount, which is $40 per month.
However, your question only gives the new amount: $40 per month.
Assuming an original amount (for example purposes):
Let’s assume Katherine used to pay $32 per month, and now she pays $40 per month.
Step-by-step calculation:
- Find the increase in amount: Increase=New Fee−Old Fee=40−32=8\text{Increase} = \text{New Fee} – \text{Old Fee} = 40 – 32 = 8
- Calculate the percentage increase: Percentage Increase=(IncreaseOld Fee)×100=(832)×100=25%\text{Percentage Increase} = \left( \frac{\text{Increase}}{\text{Old Fee}} \right) \times 100 = \left( \frac{8}{32} \right) \times 100 = 25\%
So, the percentage increase is 25%.
Explanation:
Understanding percentage increases is a vital part of managing finances, especially when dealing with bills, subscriptions, or service fees. In Katherine’s case, her monthly payment rose to $40. To determine the percentage increase, we need to compare this new fee to the amount she was previously paying. Since the original amount wasn’t provided in the question, let’s work with a common scenario: perhaps Katherine’s old fee was $32 per month.
The difference between the new and old amounts is $8. This difference represents the increase in her payment. To find what percentage this $8 increase is of the original $32, we divide 8 by 32, getting 0.25. Multiplying by 100 converts this to a percentage, giving a 25% increase.
This percentage tells us how much the fee rose relative to what it was before. A 25% increase is significant—it means Katherine is now paying one-fourth more than before. These kinds of increases can impact budgeting decisions and may prompt a review of whether the service is still worth its cost.
If Katherine’s old fee was different—say, $35 or $20—the percentage increase would change accordingly. So it’s essential to have both the old and new amounts for precise calculations. Without the original fee, we can’t know the exact percentage increase, but using examples like this helps illustrate the process.
