A jacket costs 40 dollars, and its price increases by 25%. What is the new price?

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Prepare for the Praxis Elementary Education Mathematics Test. Engage with flashcards and multiple choice questions, each with hints and explanations. Enhance your chances for exam success!

Multiple Choice

A jacket costs 40 dollars, and its price increases by 25%. What is the new price?

Explanation:
When a price increases by a percentage, you add that portion of the original price to the price itself. Here, 25% of 40 dollars is 0.25 × 40 = 10 dollars. Add that to the original price: 40 + 10 = 50 dollars. Another way to see it is to multiply by 1.25, since 100% plus 25% equals 125%, and 40 × 1.25 = 50. So the new price is 50 dollars.

When a price increases by a percentage, you add that portion of the original price to the price itself. Here, 25% of 40 dollars is 0.25 × 40 = 10 dollars. Add that to the original price: 40 + 10 = 50 dollars. Another way to see it is to multiply by 1.25, since 100% plus 25% equals 125%, and 40 × 1.25 = 50. So the new price is 50 dollars.

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