how do i solve this word problem?

Question

The new price of a car is 25% higher than the old price of $8800.The old price is less than the new price by what percent?

Answer 1

old price:  $8800

new price is 25% more

 

so new price is 1.25 * 8800 = 11,000

 

so old price over new price is: 8800/11000 = .80 or 80%

 

so the old price is (100% - 80%) = 20% less than the new price.

 

 Faster Way:

 

old price: 1 * 8800

new price: 1.25 * 8800

 

so:

 

(1 * 8800)/(1.25 * 8800) = 1/1.25 = .8 or 80%

 

so, 100% - 80% = 20%