Several years after Jane bought a watch at auction she sold it for £1218 and noticed it had increased in value by 16% from when she bought it. What was the original purchase price of the watch?
1.16x = 1218
To find the original purchase price of the watch, we first need to calculate the percentage increase from the original price to the selling price. Then we can use that percentage to find the original price.
Step 1: Calculate the increase in value
The increase in value is given as 16% of the original price. We can calculate this by multiplying the original price by 16% (or 0.16):
Increase = 0.16 * Original price
Step 2: Calculate the selling price
The selling price is the original price plus the increase in value:
Selling price = Original price + Increase
Step 3: Substitute the given values
From the given information, we know that the selling price is £1218. So we can substitute this value in the equation:
£1218 = Original price + 0.16 * Original price
Step 4: Solve for the original price
Now we can solve for the original price by simplifying the equation and isolating the original price on one side:
£1218 = Original price * (1 + 0.16)
£1218 = Original price * 1.16
(Let's divide both sides of the equation by 1.16 to isolate the original price)
Original price = £1218 / 1.16
Calculating this, we find that the original purchase price of the watch was approximately £1050.86.