A tool kit originally costs \40. Its price is increased to \50. What is the percentage inc… — Armed Services Vocational Aptitude Battery (ASVAB)

A tool kit originally costs $\$40$ . Its price is increased to $\$50$ . What is the percentage increase in the price of the tool kit?

25\%

The correct percentage increase is found by determining the difference between the new price and the old price (

\$10

), and then dividing that difference by the original price (

\$40

). The fraction

10/40

reduces to

1/4

, which equals

0.25

25\%

Calculate the absolute increase in price.

\$50 - \$40 = \$10

The percentage increase is always based on the amount of change in value.

Divide the price increase by the original price to find the decimal rate.

10 \div 40 = 0.25

Percentage change must be calculated relative to the starting amount, not the final amount.

Convert the decimal rate to a percentage.

0.25 \times 100 = 25\%

Multiplying a decimal by 100 formats it as a standard percentage.

Percentage Increase

Estimated Time:45s

Question