Step 1: Identifying the Initial and Final Prices
The initial step in this problem is to identify the starting and ending prices of the toy. According to the question, the toy initially costs £50, and the price is increased to £65.
Step 2: Understanding Percentage Increase
The concept of “percentage increase” refers to how much a quantity has grown as a percentage of the original quantity. In this case, we are trying to find how much the price of the toy has increased, in terms of a percentage of the original price.
Step 3: Calculating the Absolute Increase
Before we find the percentage increase, we need to calculate how much the price has increased in absolute terms. This can be found by subtracting the original price from the increased price.
Absolute Increase = Increased Price – Original Price Absolute Increase = £65 – £50 = £15
So, the price of the toy has increased by £15.
Step 4: Calculating the Percentage Increase
Now, we can calculate the percentage increase. This is done by dividing the absolute increase by the original price and then multiplying by 100 to convert the result to a percentage.
Percentage Increase = (Absolute Increase / Original Price) * 100 Percentage Increase = (£15 / £50) * 100 = 30%
So, the price of the toy increased by 30%. This calculation illustrates how to calculate the percentage increase in a given value, a fundamental concept used in a range of fields, including finance, economics, business, and more. It provides a way to express how much a quantity has grown relative to its original size.