Question

Liam will make 5% more this year than last year. Last year he made $24,000. Liam calculates that
he will make $22,800 this year. Explain why the answer is unreasonable. Then show two ways
to find the correct amount.

Answer 1

Answer:

• $25200

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Last year's number was $24000.

This year it has to increase by 5% but the number calculated is less:

• 22800 < 24000, hence it is unreasonable.

One way to find the the value for this year:

• 24000 + 5% =
• 24000 + 24000*5/100 =
• 24000 + 1200 =
• 25200

Another way:

5% increase makes it 105%, so calculate 105% of $24000:

• 24000 * 105/100 =
• 24000 * 1.05 =
• 25200