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Problem-Solving and Data AnalysisEasy–MediumPercent increase in a price

Problem-Solving and Data Analysis practice question

A bicycle that cost $80 last year costs $100 this year. By what percent did its price increase?

Answer: 25

The increase is 100 − 80 = $20, and as a fraction of the ORIGINAL price that is 20/80 = 0.25 = 25%.

Common wrong answers

If you answered 20
20% is 20/100, dividing by the new price; percent change is measured against the original, 80.
If you answered 80
80 is the original price, not the percent.
If you answered 125
125% is the new price as a percent of the old; the INCREASE is 125% − 100% = 25%.

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