The Correct Answer and Explanation is:
The correct answer is 20%.
To find the percent of increase, you need to follow a specific formula. The formula for calculating a percent increase is: ((New Value – Original Value) / Original Value) * 100. This calculation determines the change relative to the starting point and then converts that ratio into a percentage.
First, identify the values given in the problem. The original price of the purse was $45, and the new price is $54.
The initial step is to calculate the amount of the increase. You find this by subtracting the original price from the new price.
Increase Amount = $54 – $45 = $9.
The price of the purse increased by $9.
Next, you need to determine what percentage this
9increaseisoftheoriginalprice.Todothis,youdividetheincreaseamountbytheoriginalprice.Itiscrucialtousetheoriginalprice(9increaseisoftheoriginalprice.Todothis,youdividetheincreaseamountbytheoriginalprice.Itiscrucialtousetheoriginalprice(45) as the denominator because the percentage change is based on the starting value.
Ratio of Increase = $9 / $45.
This fraction, 9/45, can be simplified. The greatest common divisor of 9 and 45 is 9. Dividing both the numerator and the denominator by 9 gives you 1/5.
Finally, to express this fraction as a percentage, you multiply it by 100.
Percent Increase = (1/5) * 100 = 20%.
Alternatively, you could first perform the division 9 ÷ 45, which equals the decimal 0.20. To convert this decimal to a percentage, you multiply by 100, which also results in 20%. Therefore, the price of the purse increased by 20%.
