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A new policy increases the budget for public transport by 12% from an initial bu

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Question: A new policy increases the budget for public transport by 12% from an initial budget of $300 million. What is the new budget?

Options:

  1. $336 million
  2. $330 million
  3. $340 million
  4. $320 million

Correct Answer: $336 million

Solution: 

New budget = Initial budget + (12% of Initial budget) = 300 + (0.12 * 300) = 336 million.

A new policy increases the budget for public transport by 12% from an initial bu

Practice Questions

Q1
A new policy increases the budget for public transport by 12% from an initial budget of $300 million. What is the new budget?
  1. $336 million
  2. $330 million
  3. $340 million
  4. $320 million

Questions & Step-by-Step Solutions

A new policy increases the budget for public transport by 12% from an initial budget of $300 million. What is the new budget?
  • Step 1: Identify the initial budget, which is $300 million.
  • Step 2: Calculate 12% of the initial budget. To do this, convert 12% to a decimal by dividing by 100, which gives 0.12.
  • Step 3: Multiply the initial budget by 0.12 to find the amount of the increase: 300 million * 0.12 = 36 million.
  • Step 4: Add the increase to the initial budget to find the new budget: 300 million + 36 million = 336 million.
  • Percentage Increase – Understanding how to calculate a percentage increase from an initial value.
  • Basic Arithmetic – Applying basic arithmetic operations to compute the new budget.
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