The average television prime-time advertising unit of \(30\) seconds cost \(\$30,000\) in \(1973\) and \(\$50,000\) in

[Vincen]

The average television prime-time advertising unit of \(30\) seconds cost \(\$30,000\) in \(1973\) and \(\$50,000\) in \(1977.\) What was the approximate percent increase in the cost of a unit?

A) \(20\%\)
B) \(33\%\)
C) \(40\%\)
D) \(60\%\)
E) \(67\%\)

Answer: E

Source: Princeton Review

[Scott@TargetTestPrep]

The average television prime-time advertising unit of \(30\) seconds cost \(\$30,000\) in \(1973\) and \(\$50,000\) in \(1977.\) What was the approximate percent increase in the cost of a unit?

A) \(20\%\)
B) \(33\%\)
C) \(40\%\)
D) \(60\%\)
E) \(67\%\)

Answer: E

Solution:

We can use the percent change formula:

(New - Old)/Old x 100

(50,000 - 30,000)/30,000 x 100

20,000/30,000 x 100

2/3 x 100

200/3 ≈ 67

Answer: E