The price of an item increased by 25% over the last 5 years. Which values could represent the item’s old and new prices? Select the two correct answers.(1 point)

Responses

Old price: $320

New price: $400

Old price: $320 New price: $400

Old price: $44

New price: $33

Old price: $44 New price: $33

Old price: $28

New price: $35

Old price: $28 New price: $35

Old price: $200

New price: $270

Old price: $200 New price: $270

Old price: $15

New price: $18

1 answer

To determine the correct old and new prices based on a 25% increase, we can use the following formula:

New Price = Old Price × (1 + Percentage Increase)

Given that the percentage increase is 25%, we can express it as a decimal: 1 + 0.25 = 1.25

So, the New Price can also be calculated from the Old Price using the formula: New Price = Old Price × 1.25

Now, let's check the provided pairs:

  1. Old price: $320; New price: $400

    • New Price = 320 × 1.25 = $400 (This pair is correct.)
  2. Old price: $44; New price: $33

    • New Price = 44 × 1.25 = $55 (This pair is incorrect.)
  3. Old price: $28; New price: $35

    • New Price = 28 × 1.25 = $35 (This pair is correct.)
  4. Old price: $200; New price: $270

    • New Price = 200 × 1.25 = $250 (This pair is incorrect.)
  5. Old price: $15; New price: $18

    • New Price = 15 × 1.25 = $18.75 (This pair is incorrect.)

The correct pairs that represent the old and new prices with the 25% increase are:

  • Old price: $320; New price: $400
  • Old price: $28; New price: $35