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# The annual interest rate on a certain savings account increases from

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Math Expert
Joined: 02 Sep 2009
Posts: 51218
The annual interest rate on a certain savings account increases from  [#permalink]

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26 Jun 2018, 20:34
00:00

Difficulty:

25% (medium)

Question Stats:

84% (00:52) correct 16% (00:53) wrong based on 43 sessions

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The annual interest rate on a certain savings account increases from 1.25% to 1.5%. What percent increase in the annual interest rate does this change represent?

A. 0.2%
B. 0.25%
C. 0.167%
D. 20%
E. 25%

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Intern
Joined: 02 Sep 2015
Posts: 42
The annual interest rate on a certain savings account increases from  [#permalink]

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26 Jun 2018, 21:26
Percentage increase = Difference / Starting value
= (1.5 - 1.25) / 1.25
= 0.25 / 1.25
= 1/ 5
= 20

e-GMAT Representative
Joined: 04 Jan 2015
Posts: 2313
Re: The annual interest rate on a certain savings account increases from  [#permalink]

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26 Jun 2018, 22:34
1

Solution

Given:
• The annual interest rate on a certain savings account increases from 1.25% to 1.5%

To find:
• The percentage increase in the annual interest rate

Approach and Working:
The initial interest rate was 1.25% and the final interest rate is 1.5%
• Therefore, percent increase in the interest rate = $$\frac{1.5 – 1.25}{1.25} * 100 = \frac{0.25}{1.25} * 100$$ = 20%

Hence, the correct answer is option D.

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Re: The annual interest rate on a certain savings account increases from &nbs [#permalink] 26 Jun 2018, 22:34
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# The annual interest rate on a certain savings account increases from

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