SOLUTION: Due to inflation there were two demand increases. After the second, the price for the certain item became 6 times the original. What was the percent increase of the second if the f

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Question 1060931: Due to inflation there were two demand increases. After the second, the price for the certain item became 6 times the original. What was the percent increase of the second if the first increase was 50%?
Found 2 solutions by CubeyThePenguin, greenestamps:
Answer by CubeyThePenguin(3113) About Me  (Show Source):
You can put this solution on YOUR website!
original cost = $100

first increase = $100 * 150% = $150

second increase: $150 * 400% = $600

Percent increase the second time was 400 - 100 = 300%.

Answer by greenestamps(13203) About Me  (Show Source):
You can put this solution on YOUR website!


An increase of x% multiplies the value by a factor of (100+x)%. For example the first increase in this problem multiplies the value by (100+50)% = 150% = 1.5 or 3/2.

We need the second increase to make the value 6 times the original:
(1.5)(x) = 6
x = 4

The increase is by a factor of 4, or 400%. That 400% is 100% plus the amount of the second increase, so the second increase was by 400-100 = 300%.