A bank offers a 5% increase on a deposit. If the deposit amount is $1,000, what

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Question: A bank offers a 5% increase on a deposit. If the deposit amount is $1,000, what will be the total amount after the increase?

Options:

Correct Answer: $1,050

Solution:

Total Amount = Deposit + (5% of Deposit) = 1000 + (0.05 * 1000) = 1000 + 50 = $1,050.

A bank offers a 5% increase on a deposit. If the deposit amount is $1,000, what will be the total amount after the increase?

A bank offers a 5% increase on a deposit. If the deposit amount is $1,000, what will be the total amount after the increase?

Step 1: Identify the deposit amount. In this case, the deposit amount is $1,000.
Step 2: Determine the percentage increase. The bank offers a 5% increase.
Step 3: Convert the percentage to a decimal. 5% as a decimal is 0.05.
Step 4: Calculate the increase by multiplying the deposit amount by the decimal. So, 0.05 * 1000 = $50.
Step 5: Add the increase to the original deposit amount. So, $1,000 + $50 = $1,050.
Step 6: The total amount after the increase is $1,050.

Percentage Increase – Understanding how to calculate a percentage increase on a given amount.
Basic Arithmetic – Performing addition and multiplication to find the total amount after applying the percentage increase.