In 2022, selected automobiles had an average cost of $16,000. The average cost of those same automobiles is now $20,000. What was the rate of increase for these automobiles between... In 2022, selected automobiles had an average cost of $16,000. The average cost of those same automobiles is now $20,000. What was the rate of increase for these automobiles between the two time periods? Note: Enter your answer as a percentage.
Understand the Problem
The question is asking for the rate of increase in the average cost of selected automobiles from $16,000 to $20,000, expressed as a percentage. To compute this, we need to find the difference in cost, divide it by the original cost, and then multiply by 100 to convert it into a percentage.
Answer
The rate of increase is $25\%$.
Answer for screen readers
The rate of increase is $25%$.
Steps to Solve
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Calculate the difference in cost To find the increase in cost, subtract the original cost from the new cost. [ \text{Difference} = \text{New Cost} - \text{Original Cost} = 20000 - 16000 ]
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Determine the increase in cost Calculate the difference obtained in the first step. [ \text{Difference} = 4000 ]
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Calculate the rate of increase This is done by dividing the difference by the original cost and then multiplying by 100 to convert it to a percentage. [ \text{Rate of Increase} = \left(\frac{\text{Difference}}{\text{Original Cost}}\right) \times 100 = \left(\frac{4000}{16000}\right) \times 100 ]
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Final calculation Perform the calculation to find the percentage. [ \text{Rate of Increase} = \left(0.25\right) \times 100 = 25% ]
The rate of increase is $25%$.
More Information
This calculation reflects the percentage increase in the average cost of selected automobiles from $16,000 to $20,000. A 25% increase means that the new average cost is a quarter more than the original average cost.
Tips
- Forgetting to multiply by 100 when converting to a percentage.
- Confusing the original cost and the new cost during calculations.
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