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## anonymous one year ago I have a pretty simple math problem: the price of a liter cola increased from $1.09 to$1.29. What was the percent of increase? I know to first subtract (1.29-1.09) that equals \$.20. Next divide .20 by 1.09 (first move decimal points over) I got the same ander as the book, except it says the final answer is 18.3% increase. Where did the decimal come from? It's supposed to be in front of the 1. I think they're rounding, but how did the get that? And how are you supposed to round a non terminating, non repeating decimal(in finance)?

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1. kropot72

The percentage increase is given by $\large \frac{0.20}{1.09}\times\frac{100}{1}=18.3\ percent$ The answer is rounded to the nearest one-tenth of a percent.

2. kropot72

@Learea Do you find this helps your understanding?

3. anonymous

Thanks! Is that how numbers (with percents or money) is usually rounded? To the nearest one tenth?

4. kropot72

Well, the answer in the book has been rounded to the nearest one-tenth of a percent. However interest rates on investments are often stated to one-hundredth of a percent. Sometimes questions state what rounding should be given to an answer.

5. anonymous

Alright, thank you

6. kropot72

You're welcome :)

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