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The annual interest rate on a certain savings account
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02 Feb 2017, 07:41
02 Feb 2017, 07:41
Expert Reply
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Question Stats:
68% (00:42) correct
31% (00:21) wrong based on 35 sessions
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The annual interest rate on a certain savings account increases from 1.25% to 1.5%. What percent increase in the annual interest rate does this change represent?
A. 0.2%
B. 0.25%
C. 0.167%
D. 20%
E. 25%
A. 0.2%
B. 0.25%
C. 0.167%
D. 20%
E. 25%
Drill 2
Question: 12
Page: 317
Question: 12
Page: 317
Re: The annual interest rate on a certain savings account
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02 Feb 2017, 07:48
02 Feb 2017, 07:48
Expert Reply
Explanation
The percent change formula is \(\frac{difference}{original} \times 100\), so plugging the numbers from the problem into the formula yields \(\frac{0.25}{1.25} \times 100\)=\(\frac{25}{125} \times 100\) = \(\frac{1}{5} \times 100\) = 20. If you selected choice (E), you may have used the wrong value as the original: Remember, in a percent increase, the original number is the smaller value.
Hence option D is correct.
The percent change formula is \(\frac{difference}{original} \times 100\), so plugging the numbers from the problem into the formula yields \(\frac{0.25}{1.25} \times 100\)=\(\frac{25}{125} \times 100\) = \(\frac{1}{5} \times 100\) = 20. If you selected choice (E), you may have used the wrong value as the original: Remember, in a percent increase, the original number is the smaller value.
Hence option D is correct.
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Re: The annual interest rate on a certain savings account
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04 Jan 2021, 07:54
04 Jan 2021, 07:54
1
sandy wrote:
The annual interest rate on a certain savings account increases from 1.25% to 1.5%. What percent increase in the annual interest rate does this change represent?
A. 0.2%
B. 0.25%
C. 0.167%
D. 20%
E. 25%
A. 0.2%
B. 0.25%
C. 0.167%
D. 20%
E. 25%
Drill 2
Question: 12
Page: 317
Question: 12
Page: 317
Percent change = (100)(new - old)/old
= (100)(1.5 - 1.25)/1.25
= (100)(0.25)/1.25
= 25/1.25
NOTE: at this point, we can use the calculator, some long division, OR we can use some number sense.
We know that 25/1 = 25
Since 1.25 is a bit bigger than 1, we know that 25/1.25 will be a little bit less than 25
Answer: D
Cheers,
Brent
