In 2000, the balance on Martin’s credit card increased by 40%. In 2001, the balance increased by 30%. How does the balance at the end of 2001 compare to the balance at the beginning on 2000? In percentage form

Answer 1

To find the final balance at the end of 2001, we need to multiply the balance at the beginning of 2000 by 1 + 0.4 to account for the increase in 2000.

Then, we need to multiply the result by 1 + 0.3 to account for the increase in 2001.

So, the balance at the end of 2001 is (1 + 0.4) * (1 + 0.3) times the balance at the beginning of 2000.

In percentage form, this can be simplified as follows:

[(1 + 0.4) * (1 + 0.3) - 1] * 100

= (1.4 * 1.3 - 1) * 100

= 1.82 * 100

= 182%

Therefore, the balance at the end of 2001 is 182% of the balance at the beginning of 2000.