Question

To keep up with rising expenses, a motel manager needs to raise the $40.00 room rate by 22%. What will be the new rate?

Answer 1

See a solution process below:

Explanation:

The formula to solve this problem is:

`n = r + (r * i)`

Where:

`n` is the new rate: what we are solving for

`r` is the current rate: $40.00 for this problem.

`i` is the percent increase: 22% for this problem. "Percent" or "%" means "out of 100" or "per 100", Therefore 22% can be written as `22/100`.

Substituting and calculating `n` gives:

`n = $40.00 + ($40.00 * 22/100)`

`n = $40.00 + ($880.00)/100`

`n = $40.00 + $8.80`

`n = $48.80`