Question

A company's revenue increased from \( \$\)200,000  in  2019  to \(\$\)250,000 in 2020. What is the percentage increase? 

• A. 20%
• B. 22.5%
• C. 25%
• D. 30%

Hint:

Percentage increase is calculated as: \(\frac{\text{New Value} - \text{Old Value}}{\text{Old Value}} \times 100%\).

Answer 1

The Correct Option is C

To calculate the percentage increase, we use the following formula for percentage change: \[ \text{Percentage Increase} = \frac{\text{New Value} - \text{Old Value}}{\text{Old Value}} \times 100. \]
[6pt] Step 1: Identify the old and new values.
The old value (initial amount) is \(200{,}000\), and the new value (final amount) is \(250{,}000\). These represent the quantities before and after the increase, respectively.
[6pt] Step 2: Substitute the values into the formula.
Now, substitute these values into the percentage increase formula: \[ \frac{250{,}000 - 200{,}000}{200{,}000} \times 100. \]
[6pt] Step 3: Perform the subtraction.
First, subtract the old value from the new value: \[ 250{,}000 - 200{,}000 = 50{,}000. \]
[6pt] Step 4: Divide by the old value.
Next, divide the result by the old value (\(200{,}000\)): \[ \frac{50{,}000}{200{,}000} = 0.25. \]
[6pt] Step 5: Multiply by 100 to get the percentage.
Finally, multiply the result by 100 to express the change as a percentage: \[ 0.25 \times 100 = 25%. \]
[6pt] Conclusion:
Therefore, the percentage increase is \(\boxed{25%}\). This means that the value has increased by 25% from the original amount.