A trade agreement between two countries is expected to increase trade by 25%. If
Practice Questions
Q1
A trade agreement between two countries is expected to increase trade by 25%. If the current trade volume is $200 million, what will be the new trade volume?
$220 million
$250 million
$275 million
$300 million
Questions & Step-by-Step Solutions
A trade agreement between two countries is expected to increase trade by 25%. If the current trade volume is $200 million, what will be the new trade volume?
Step 1: Identify the current trade volume, which is $200 million.
Step 2: Determine the percentage increase in trade, which is 25%.
Step 3: Calculate 25% of the current trade volume. This is done by multiplying $200 million by 0.25 (which is 25% in decimal form).
Step 4: Perform the multiplication: $200 million * 0.25 = $50 million.
Step 5: Add the increase ($50 million) to the current trade volume ($200 million).
Step 6: Calculate the new trade volume: $200 million + $50 million = $250 million.
Percentage Increase – Understanding how to calculate a percentage increase on a given value.
Basic Arithmetic – Applying addition and multiplication to solve for the new trade volume.
