Question

The price of pencil is increased from $Rs.4$ to $Rs.5$. What is the percentage increase?

Answer 1

Step 1: Finding the increase in price of the pencil.

Original price of pencil $=Rs.4$

The new price of a pencil $=Rs.5$

Therefore, the increase in price is given by,

$\Rightarrow$ New price $-$ Original price

$\Rightarrow Rs.5-Rs.4=Rs.1$

Thus, the price of a pencil is increased by $Rs.1$.

Step 2: Finding the percentage increase.

As per the given statement, $Rs.1$ is the increase on $Rs.4$, therefore, the percentage increase will be,

$\Rightarrow \frac{incrementinvalue}{originalvalue}\times 100$

$$\begin{gathered} \Rightarrow \frac{Rs.1}{Rs.4}\times 100=\frac{1}{4}\times 100 \\ \Rightarrow \frac{\cancel{100}25}{\cancel{4}1}=25\% \end{gathered}$$

Hence, the percentage increase is $25\%$.