Am i on the right track ? I have two percent problems. Please help.

Question

Deb's Bakery marks up a cake it makes for $10 by 55%. Round up to the nearest cent.

* $10 x .55 = $5.50
* $10 + $5.50 = $15.50
* $15.51

The price of a loaf of bread went down to $0.45 from $0.50. What was the percent decrease in the price of the bread.

A)1% B)5% C)7.5% D)10% E)15%

Solution

$0.50 - $0.45 = .05
percent equivalent 5%

I can't understand,how is this the incorrect answer.


Your help is appreciated.

Answer 1

first one is good

in the second, you want the percentage of decrease
so .05/.50 = .1 = 10%

you just converted the $.05 to a percentage, there is no connection.
(that's like converting apples to oranges)

Answer 2

its 10%.