problem:
A golf club membership cost $ 400 last year.
Its price is increased by 5%.
What is the new cost of the membership?
answer:
1. step: given/wanted
given: the base value (old price) = $ 400,- the rate = 105% (100% + 5%)
wanted: part (new price)
2. step formula:
part = base * rate : 100
part = 400 * 105 : 100
part = $ 425.25
The membership for this year is $ 425.25.