Chapter 6.4, Problem 1GP

To determine

To find: Percentage of change.

Answer to Problem 1GP

Percent of change is $20\%$

Percent of change is decrease.

Explanation of Solution

Given information:

Original amount $=\$40$

Final amount $=\$32$

Concept:

Percent of change $=\frac{A}{O}\times 100$

Where

  $A=$ Amount of change.

  $O=$ Original amount.

From given information

Original amount $=\$40$

Final amount $=\$32$

Amount of change = Final amount $-$ Original amount

  $\begin{array}{l}\Rightarrow A=32-40\\ \Rightarrow A=-8\end{array}$

Therefore,

Percent of change $=\frac{-8}{40}\times 100$

  $\Rightarrow$ Percent of change $=\frac{-800}{40}$

  $\Rightarrow$ Percent of change $=-20$

So, the Percent of change is $20\%$ and negative sign indicates that percent of decrease.