If a government plans to increase its budget by 15% next year, and the current b

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Question: If a government plans to increase its budget by 15% next year, and the current budget is $300 billion, what will be the new budget?

Options:

Correct Answer: $345 billion

Solution:

New budget = 300 billion * (1 + 0.15) = 300 billion * 1.15 = $345 billion.

If a government plans to increase its budget by 15% next year, and the current budget is $300 billion, what will be the new budget?

If a government plans to increase its budget by 15% next year, and the current budget is $300 billion, what will be the new budget?

Step 1: Identify the current budget, which is $300 billion.
Step 2: Determine the percentage increase, which is 15%.
Step 3: Convert the percentage increase to a decimal by dividing by 100. So, 15% becomes 0.15.
Step 4: Add 1 to the decimal to find the total multiplier. So, 1 + 0.15 = 1.15.
Step 5: Multiply the current budget by the total multiplier. So, $300 billion * 1.15.
Step 6: Calculate the result of the multiplication. $300 billion * 1.15 = $345 billion.
Step 7: The new budget is $345 billion.

Percentage Increase – Understanding how to calculate a percentage increase on a given amount.
Basic Arithmetic – Applying multiplication to compute the new budget after the increase.