Question

Jasmine invests £250 in a building society. After the first year her account
contains £262.50. After the second year it contains £280.88. Calculate the
percentage increase of the amount in her account:
(a) during the first year.
(b) during the second year.
(c) over the two years.
Give your ansivers correct to 2 decimal places

Answer 1

Answer:

(a) 5.00%

(b) 7.00%

(c) 12.35%

Step-by-step explanation:

(a) Find the difference, in £, between the value after the first year and the original value. Divide that by the original value and multiply by 100:

$262.50-250=12.50\\\\\frac{12.5}{250}*100= \frac{125}{25}=5.00\%$

(b) Find the difference, in £, between the value after the second year and the value after the first year. Divide that by the value after the first year and multiply by 100:

$280.88-262.50=18.38\\\\\frac{18.38}{262.50}*100= 7.0019\%=7.00\%$

(c) Find the difference, in £, between the value after the second year and the original value. Divide that by the original and multiply by 100:

$280.88-250=30.88\\\\\frac{30.88}{250}*100= 12.352\%=12.35\%$