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Percentages · Question 21 of 72

Question 21

EasyOriginal question

A bank raised its fixed-deposit interest rate from 8% a year to 10% a year. By what percent (not percentage points) did the interest rate rise?

Options for question 21

Show the answer and explanation
CorrectNot quiteAnswer D

Correct answer: D

Explanation

  1. The rate rose by 10−8=210 - 8 = 2 percentage points.

  2. As a percent of the old rate: 28×100=25%\frac{2}{8} \times 100 = 25\%.

Worth noting

2 is the rise in percentage POINTS, not percent. Dividing by the new rate 10 gives 20%.

Concept
Percent change versus percentage-point change
Typical time
40 s
Your time
—
The rule this testsPercentage change
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Ten questions from Percentages, at your own pace.

Practise this chapter →

Ten questions from Percentages, at your own pace.

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