900 x 1.07

Lyra Rowan

less than a minute read

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29-09-2024

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Unlocking the Power of Percentages: A Step-by-Step Guide to Calculating 900 x 1.07

Have you ever wondered how a seemingly simple multiplication like 900 x 1.07 can be so powerful? This seemingly straightforward calculation is the foundation of many real-world scenarios, from calculating interest on your savings to understanding price increases. Let's break it down and explore its significance.

What's the Problem?

The question, "What is 900 x 1.07?" essentially asks: What is 107% of 900? This calculation is crucial when we need to find a value that's a certain percentage greater than the original amount.

Let's Dive Deeper

The 1.07 in the equation represents 107%, which is 100% (the original amount) plus 7% (the increase). Here's the breakdown:

• 100% of 900 is 900 (because 100% equals 1, and 900 x 1 = 900)
• 7% of 900 is 63 (because 7% equals 0.07, and 900 x 0.07 = 63)

Adding it all together:

900 x 1.07 = 900 + 63 = 963

Real-World Applications

This type of calculation is used in numerous situations:

• Calculating Interest: Imagine you have $900 in a savings account earning 7% annual interest. The calculation 900 x 1.07 would determine the total amount in your account after one year.
• Price Increases: If a product costs $900 and experiences a 7% price hike, the calculation 900 x 1.07 gives you the new price.
• Sales Tax: In many places, sales tax is calculated as a percentage of the purchase price. Understanding this type of calculation helps determine the final price.

Beyond the Basics

This simple calculation highlights the power of percentages in our everyday lives. It's a fundamental tool for understanding growth, change, and financial concepts. Whether you're a student learning about percentages or a seasoned investor, understanding this basic concept can lead to a deeper understanding of the world around you.

Credit: This explanation draws inspiration from the helpful explanations shared by users on Brainly, a platform for peer-to-peer learning. Many users contributed insightful solutions to the question "900 x 1.07," allowing us to explore this concept in a deeper, more practical way.