A car manufacturer announced Dad’s next year the price of a cartain model car will increase it by 5.5%. This year the price is $19,556. Find the increase and the new price.

Question

A car manufacturer announced Dad’s next year the price of a cartain model car will increase it by 5.5%. This year the price is $19,556. Find the increase and the new price.

Answer 1

You'll need to change the 5.5% to its decimal equivalent (multiply by 0.01 or move the decimal point two places to the left) (= 0.055)

Then calculate 0.055 x $19,556 to find the amount of the increase in price. Add the increase to the current price to get the new price next year.

Or, to find the new price: 19556 + (0.055 x 19556) = 19556(1 + 0.055)

= 19,556(1.055).