In October 2021, a major restaurant chain reported its third-quarter net income of $2.75 billion, an increase from $1.76 billion a year earlier. What was the percentage of increase in the restaurant chain’s net income for this quarter? Round the answer to the nearest percentage point.
To calculate the percentage increase in net income, we need to find the difference between the current and previous net income, divide it by the previous net income, and then multiply by 100.
Difference in net income = $2.75 billion - $1.76 billion = $0.99 billion
Percentage increase = ($0.99 billion / $1.76 billion) x 100
= 0.5625 x 100 ≈ 56%
Therefore, the percentage increase in the restaurant chain's net income for this quarter is approximately 56%.
To calculate the percentage increase in the restaurant chain's net income for this quarter, follow these steps:
Step 1: Find the difference between the current net income and the net income from a year earlier.
$2.75 billion - $1.76 billion = $0.99 billion
Step 2: Divide the difference by the net income from a year earlier.
$0.99 billion / $1.76 billion = 0.5625
Step 3: Multiply the result by 100 to convert it to a percentage.
0.5625 * 100 = 56.25
Step 4: Round the percentage to the nearest whole number.
Rounding 56.25 to the nearest whole number, the increase in the restaurant chain's net income for this quarter is approximately 56%.
Therefore, the percentage increase in the restaurant chain's net income for this quarter is 56%.
To calculate the percentage increase in the restaurant chain's net income, you need to use the following formula:
Percentage Increase = [(New Value - Old Value) / Old Value] * 100
In this case, the new value (third-quarter net income) is $2.75 billion, and the old value (net income a year earlier) is $1.76 billion. Let's plug these values into the formula:
Percentage Increase = [($2.75 billion - $1.76 billion) / $1.76 billion] * 100
Calculating the numerator:
($2.75 billion - $1.76 billion) = $0.99 billion
Now, let's divide the numerator by the denominator:
$0.99 billion / $1.76 billion ≈ 0.5625
Multiplying by 100 to convert the decimal to a percentage:
0.5625 * 100 = 56.25
Therefore, the percentage increase in the restaurant chain's net income for this quarter is approximately 56%.