Question

the inflation rate on home heating oil is 10%. if the price of home heating oil was $2.25 per gallon, what is the price today?

current price = $?

round to the nearest hundredth.

Explanation:

Step1: Calculate the increase amount

The inflation rate is 10%, so we first find 10% of the original price. The formula for finding a percentage of a number is $ \text{Percentage of number} = \text{Number} \times \frac{\text{Percentage}}{100} $. Here, the number is $ 2.25 $ and the percentage is 10. So the increase amount is $ 2.25\times\frac{10}{100}=2.25\times0.1 = 0.225 $.

Step2: Calculate the current price

The current price is the original price plus the increase amount. So we add the original price ($ 2.25 $) and the increase amount ($ 0.225 $). That is $ 2.25+0.225 = 2.475 $.

Step3: Round to the nearest hundredth

Rounding $ 2.475 $ to the nearest hundredth, we look at the thousandth place which is 5. When the digit in the thousandth place is 5 or more, we round up the hundredth place. So $ 2.475 $ rounded to the nearest hundredth is $ 2.48 $.

Answer:

$2.48$