If a country has a budget surplus of $20 billion and it plans to increase its bu

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Question: If a country has a budget surplus of $20 billion and it plans to increase its budget by 10%, what will be the new budget surplus?

Options:

Correct Answer: $22 billion

Solution:

New budget surplus = 20 billion * (1 + 0.10) = 20 billion * 1.10 = $22 billion.

If a country has a budget surplus of $20 billion and it plans to increase its budget by 10%, what will be the new budget surplus?

If a country has a budget surplus of $20 billion and it plans to increase its budget by 10%, what will be the new budget surplus?

Step 1: Identify the current budget surplus, which is $20 billion.
Step 2: Determine the percentage increase planned for the budget, which is 10%.
Step 3: Convert the percentage increase into a decimal by dividing by 100. So, 10% becomes 0.10.
Step 4: Calculate the total increase by multiplying the current budget surplus by the decimal. This is $20 billion * 0.10.
Step 5: Calculate the increase amount, which is $2 billion (from Step 4).
Step 6: Add the increase amount to the current budget surplus. So, $20 billion + $2 billion = $22 billion.
Step 7: The new budget surplus is $22 billion.

Budget Surplus Calculation – Understanding how to calculate a new budget surplus based on a percentage increase.