Algebra and Up:
Question: The value of a painting increased by 20% after the painter appeared on a popular talk show. The value of the painting increased again by 15% when the painter was featured in a magazine. If the value of the painting is now $1,242.00, what was its original value?
Answer: $900
Solution:
The value increased by 20%, then the percent increase was compounded by another 15%. So, if we call the original value of the painting x, we can set up an equation:
x(1.20)(1.15) = $1,242.00
1.38x = $1,242.00
x = $900.00
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