On a bar graph the average cost of renting a studio in one city in years 1994 through 1998.
The graph goes from 0 to 600. Year 94 is up to 400, year 95 is up to 500, year 96 is up to 500, year 97 is up to 525, and year 98 is up to 550.
By what percentage does the average price increase from 1994 to 1995? If the bar graph is truncated by starting at 300 instead of 0 what percentage does the price appear to increase from 94 to 95?
1. I= (P2/P1 - 1)100%,
I = (500 / 400 - 1)!00%,
I = (1.25 -1)100% = 25% Increase.
2. I = (500 / 300 - 1)100%,
I = (1.6667 - 1)100% = 66.67% Increase.