Question 6669
We start with 14,500, right? And we don't know the percentage it increased by to get to 19,400. There is a formula that we can use:


{{{ P[0] + P[0]r = P[f] }}}


{{{ P[0] }}} is the starting value, r is the rate of increase (making {{{ P[0]*r }}} the amount to increase {{{ P[0] }}} by), and {{{ P[f] }}} is the final price. We can plug in the values that they gave us and we can solve for r:


{{{ 14550 + 14500r = 19400 }}}


{{{ 14550r = 4850 }}}


{{{ r = 0.333 }}} repeating, or about 33 1/3 % increase.


You would divide 4850 by the 14,550 - the value you started with, to get the 33 1/3 %. So, why choose the 14,550 and not the 19,400? Because the 4850 is the amount of increase from that base price 14,550. Another way to think about it is you know that 4850 increased 14,550 to the new value. So, it makes sense to check out what percentage of the original value this 4850 is, and {{{ 4850/14550 }}} gives you that 33 1/3 % increase.