SOLUTION: A price went up 30% one year, and this new price went up 40% the next year. What was the combined percent increase?

Algebra ->  Percentage-and-ratio-word-problems -> SOLUTION: A price went up 30% one year, and this new price went up 40% the next year. What was the combined percent increase?       Log On


   

Question 770133: A price went up 30% one year, and this new price went up 40% the next year. What was the combined percent increase?
Answer by ramkikk66(644) About Me  (Show Source):
You can put this solution on YOUR website!
Let the initial price be x
At the end of year 1 it is x + 0.3*x (since it went UP by 30% or 0.3 times)
= 1.3*x
At the end of year 2, it is 40% of the value at year1 i.e. the new price is
1.3*x + (0.4*1.3*x) = 1.3*x*1.4 = 1.82*x
Since the price has gone up from x to 1.82*x,
the combined percent increase = 0.82 or 82%
Hope you got it :)