Question

QUESTION 3 of 10: Your furniture making company has a policy of increasing prices 3% per year to keep up with inflation. Last year your
lucury chairs were priced at $525. How much should they be priced at this year?
OOO
a) $525.00
b) $540 55
c) $540,75
d) $55555

Answer 1

Answer:

$540.75

Explanation:

A 3 percent increase will mean that the new price will be 103 percent of the current value.

the current price is $525; the new price will be 103% of $525

= 525 = 100%

103 % = 525/100 x 103

=5.25 x 103

=$540.75

The new price will be $540.75