Harry notes that the state sales tax went from 2% to 2.5%, which he says is not too bad because it's just a one-half percent increase. But Linda says that it really is bad because it's a 25% increase. Who's right, and why?

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Answer:

We conclude that Linda is right, and that it really is bad because it's a 25% increase.

Step-by-step explanation:

Harry notes that the state sales tax went from 2% to 2.5%.

Therefore, we get the following proportion.

We calculate:

2% : 100% = 2.5% : x

2x=100 · 2.5

2x=250

x=125%

So, we conclude it's a 125% - 100% = 25% increase.

We conclude that Linda is right, and that it really is bad because it's a 25% increase.

We are required to calculate the percentage increase in tax and determine who is right.

The percentage increase in tax is 25% and Linda is very correct

percentage increase = difference in tax /

percentage increase = difference in tax / old tax × 100

old tax = 2%

New tax = 2.5%

Difference = New tax - old tax

= 2.5% - 2%

= 0.5%

percentage increase = difference in tax /

percentage increase = difference in tax / old tax × 100

= 0.5% / 2% × 100

= 0.25 × 100

= 25%

Therefore, the percentage increase in tax is 25% and Linda is very correct

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