Theory question 101
Ratio, Percentages and RatesA fun club donates to children's home annually. The amount given is increased by 8% of its yearly value. If the donation in 2010 was $7,000.00, find the: (a) donation given in 2012 (b) total amount of money donated from 2010 to 2013
Show the model answer
Model answer
(a) 2011: 7000 × 1.08 = $7,560; 2012: 7560 × 1.08 = $8,164.80
(b) 2013: 8164.80 × 1.08 = $8,817.98
Total = 7000 + 7560 + 8164.80 + 8817.98 = $31,542.78
Explanation
Each year's donation is 1.08 times the year before; part (b) asks for the sum of four years.