“Last year at this time we had 840 employees. Since that time, our staff has increased by 5%.” Employee: “Wow! That means we now have a total of __ employees.”
The correct answer and explanation is:
Correct Answer: 882 employees
Explanation (300 words)
To solve this problem, we’re told that last year there were 840 employees, and the staff has increased by 5%. We need to calculate the new total number of employees after this 5% increase.
Step 1: Convert the Percentage to Decimal
Percent means “per hundred,” so: 5%=5100=0.055\% = \frac{5}{100} = 0.05
Step 2: Multiply the Original Number of Employees by the Percentage Increase
Now calculate 5% of 840: 0.05×840=420.05 \times 840 = 42
So, 42 employees were added in the past year.
Step 3: Add the Increase to the Original Number
840+42=882840 + 42 = 882
Therefore, the current number of employees is 882.
Why This Works
This type of calculation uses the concept of percentage increase, which is common in business, finance, and everyday scenarios. When a quantity grows by a given percent, we calculate the additional amount by multiplying the original value by that percent (in decimal form) and then add it to the original.
Alternatively, you can use a multiplier approach: 840×(1+0.05)=840×1.05=882840 \times (1 + 0.05) = 840 \times 1.05 = 882
This method directly gives the final amount after the increase.
Real-World Application
Understanding percentage increases helps in interpreting business growth, evaluating salary raises, analyzing population changes, and more. In this case, the 5% growth shows a healthy increase in staffing, which might suggest company expansion, increased demand, or successful hiring initiatives.
Thus, the total number of employees now is 882.