# Percentage increase question

#### Slayer786

Hello everyone,

I have 2 answers for this and I'm not sure which is the correct one. The question is:

An article of clothing costs £45 this year, a 10% increase in last years price. What was the articles value last year?

My 2 values are 40.5 and 40.90 reoccurring.

Can you tell me which is the correct answer and the working out.

Thank you

#### romsek

MHF Helper
Hello everyone,

I have 2 answers for this and I'm not sure which is the correct one. The question is:

An article of clothing costs £45 this year, a 10% increase in last years price. What was the articles value last year?

My 2 values are 40.5 and 40.90 reoccurring.

Can you tell me which is the correct answer and the working out.

Thank you
$45 = (1.1)cost_{\text{last year}}$

$cost_{\text{last year}} =\dfrac {45}{1.1} = 40.\overline{90}\approx 40.91$

#### Slayer786

Thank you very much for the answer and the working out

#### rahuljoshi

Let the cost of last year = £x
10% of x = x/10
The cost of this year will be = cost of last year + 10% of cost of last year
= x + x/10
= 11x/10
Now, we have already given the cost of this year which is £45
thus,
11x/10 = 45
11x = 450
x = 450/11 =40.9090
It is similar to £40.91
So, the cost of last year was £40.91.

Last edited: