In May, the price of a gallon of gasoline was $4.00. In June, the price went up to $4.20. Which of the following is the percent of increase in the cost of gasoline from May to June?

Rationale

The percent of increase in the cost of gasoline from May to June is 5.00%.

To calculate the percent increase, you subtract the original price from the new price, divide by the original price, and then multiply by 100. In this case, the increase from $4.00 to $4.20 results in a 5% increase.

A (5.00%) CORRECT

This choice correctly represents the percent increase calculated as follows: \[(\frac{4.20 - 4.00}{4.00}) \times 100 = 5\%\]. The increase of $0.20 from the original price of $4.00 accurately reflects a 5% rise.

B (0.50%) YOUR ANSWER

This option incorrectly suggests a negligible percent increase. If calculated, \[(\frac{0.20}{4.00}) \times 100 = 5\%\]. Thus, 0.50% does not reflect the actual price change and is a significant underestimation.

C (0.48%) YOUR ANSWER

This choice also misrepresents the percent increase. The calculation, \[(\frac{0.20}{4.00}) \times 100\], yields a result of 5%, not 0.48%. This figure might arise from a calculation error or misinterpretation of the percent change formula.

D (4.80%) YOUR ANSWER

While this option appears close, it is still incorrect. The calculation should yield 5% as shown in the previous explanations. The figure of 4.80% might come from an approximate figure but does not accurately represent the increase.

Conclusion

The percent increase in gasoline prices from May to June is conclusively calculated as 5.00%. This value is derived from the increase in price divided by the original price, multiplied by 100. The other choices reflect various calculation errors or misunderstandings of the formula for calculating percent change, highlighting the importance of precision in mathematical evaluations.

In May, the price of a gallon of gasoline was $4.00. In June, the price went up to $4.20. Which of the following is the percent of increase in the cost of gasoline from May to June?

The percent of increase in the cost of gasoline from May to June is 5.00%.

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