Question

How 5%=1.05

Answer 1

1.05 is NOT the same as 5%. However, if you are trying to add 5% to something you can do so by multiplying by 1.05. Here's why: if your original amount is x, then .05x is 5% of x. You want to add this to the original amount so that gives you x +.05x = x(1+.05) = x(1.05). Similarly, if you want to add 6 percent to something, multiply it by 1.06.