Question

The annual profit of the neighborhood music store was $335,899 last year. This year the profit was 12% higher. What was this year’s profit?

Answer 1

Your answer is $376,206.88 or if rounded to the nearest dollar, just $376,207

To get this answer is pretty simple. Since we are increasing our profit by 12% that means we are getting back 100% of our previous profit plus 12%, so in total a profit of 112%.

Now we need to change our % to a decimal so we can work with it. To change from a % to a decimal you just move your decimal two times to the left.

So, 112% = 1.12

Now we can multiply our decimal by our profit from last year to see how much we made this year.

So, 335,899 ×  1.12 = $376,206.88 or if rounded to the nearest dollar, just $376,207

I hope this helped!!! :)