Question

1. A shop owner buys an article for N$125,00 and decides to sell it for N$200. (4)
a. Calculate the amount of the article increase.


b. Calculate the percentage increase.

Answer 1

To solve the problem, we have the following:

**a. Calculate the amount of the article increase.**

The amount of increase can be calculated as follows:

\[
\text{Increase} = \text{Selling Price} - \text{Cost Price}
\]

Where:
- Selling Price = N$200
- Cost Price = N$125

\[
\text{Increase} = 200 - 125 = N\$75
\]

So, the amount of the article increase is **N$75.**

---

**b. Calculate the percentage increase.**

The percentage increase can be calculated using the following formula:

\[
\text{Percentage Increase} = \left(\frac{\text{Increase}}{\text{Cost Price}}\right) \times 100
\]

Using the increase calculated in part (a):

\[
\text{Percentage Increase} = \left(\frac{75}{125}\right) \times 100
\]

Calculating that:

\[
\text{Percentage Increase} = 0.6 \times 100 = 60\%
\]

So, the percentage increase is **60%.**