Let’s break down how to calculate 25,000 x 1.075 in a clear and easy-to-follow way. Understanding the Calculation 25,000 x 1.075 essentially means we’re taking 25,000 and increasing it by 7.5%.
Step-by-Step Solution
Convert the percentage to a decimal: 7.5% becomes 0.075.
Multiply: 25,000 x 0.075 = 1,875
Add the result to the original number: 25,000 + 1,875 = 26,875
Therefore, 25,000 x 1.075 = 26,875
Why This Works
Multiplying by 1.075 is the same as multiplying by 1 (which keeps the original value) and then adding 0.075 times the original value (which represents the 7.5% increase).
