Question

Each August a restaurant rent is adjusted to the cost of living index. The rent has $1,550 a month, the cost-of-living index for August was 3.7%. What is the new rent per month?

Answer 1

The new rent per month is $1,607.35.
Given: Original rent = $1,550; Cost of Living Index = 3.7%
1. Multiply the original rent by the Cost of Living Index
1,550 * .037 = 57.35

2. Add the product of original rent and Cost of Living Index to the original rent
1,550 + 57.35 = $1,607.35

Answer 2

Answer:
new rent = $1607.35

Explanation:
Assume that the original rent is x

We are given that the rent increased by 3.7%.
This means that:
new rent = x + 3.7% x
new rent = x + 0.037 x

We are given that x = 1550, therefore:
new rent = 1550 + 0.037(1550)
new rent = 1550 + 57.35
new rent = $1607.35

Hope this helps :)