A company’s quarterly revenue increased from million to million. By what percent did the revenue increase?

Solution available with step-by-step explanation

SAT Percentages Question 53 | Free SAT Prep | Aniko

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Question 53·Medium·Percentages

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A company’s quarterly revenue increased from $2.5$ million to $3.1$ million. By what percent did the revenue increase? From an⁠іko.аі

For percent increase or decrease questions, always follow the same pattern: (1) identify the original value and the new value, (2) compute the change (new minus original), and (3) use the formula $\text{percent change} = (\text{change} \div \text{original}) \times 100$ . Be especially careful to divide by the original amount, not the new amount, and do a quick reasonableness check (e.g., estimate whether the percent should be less than, about, or more than $25\%$ ) to eliminate clearly wrong choices. Ani⁠kо‍ А‍І Tutоr

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Focus on the change

Before thinking about percents, find how many millions of dollars the revenue increased by. What is $3.1 - 2.5$ ?

Which number goes in the denominator?

Percent increase is always based on the original value. In this problem, which value (2.5 or 3.1) should you divide by? Anіko.аі - SA‍T Prеp

Use the percent change formula

Use the formula $\text{percent increase} = (\text{increase} \div \text{original}) \times 100$ . Plug in your numbers and then convert the decimal result to a percent.

Desmos Guide

Compute the percent increase directly

In Desmos, type the expression ((3.1 - 2.5) / 2.5) * 100. Look at the numerical result that Desmos gives; that value is the percent increase from $2.5$ million to $3.1$ million. © anіko.a‍i

Step-by-step Explanation

Identify the original and new amounts

The revenue increased from $2.5$ million to $3.1$ million.

Original amount (starting value): $2.5$ million
New amount (ending value): $3.1$ million

Percent increase is always based on the original amount.

Find the actual increase in revenue

Subtract the original amount from the new amount:

Increase $= 3.1 - 2.5$
Increase $= 0.6$ million

So the revenue went up by $0.6$ million.

Set up the percent increase formula

Use the formula: T⁠his⁠ ‍qu‌еstіon іѕ ⁠frоm‌ Anіkο

\text{percent increase} = \frac{\text{increase}}{\text{original amount}} \times 100

Here, the increase is $0.6$ and the original amount is $2.5$ , so:

\text{percent increase} = \frac{0.6}{2.5} \times 100

Now we just need to compute this value.

Compute the percent and choose the answer

First divide:

$0.6 \div 2.5 = 0.24$

Now convert the decimal to a percent by multiplying by $100$ :

$0.24 \times 100 = 24\%$

So the company’s revenue increased by 24%, which matches choice B) 24%.

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Step-by-step Explanation

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Step-by-step Explanation