$1.00 + 9% = $1.09. $1.00 divided by 1.09 to get % = 8.26%. Why?

Question

 Can't figure out why the percentages do not match.

Answer 1

Hello Mark,

 

I am going to try to explain what I think you are trying to understand.

 

You have to qualify your equation with 9% of what. So it should look like this...

 

$1.00 + 9%($1.00) is = 1.09  ---> 1 + .09(1) = 1.09

 

So 9 cents is 9% of $1.00.  This comes in to play if you are trying to figure out what is 9% interest on $1.00.

 

Dividing 1.00 by 1.09 does not yield any percentage that is related to money or the first problem. What it will tell you is what percent of 1.09 is 1.00 and that answer is about %92.

 

I hope that make sense.