Example A.7.1.
A loaf of bread cost $3.00 last month, but this year the price rose by 6%. What should you multiply by to find the new price? What is the new price?
Solution.
To get the new price, we multiply by 1.06 to get
\begin{equation*}
1.06(3.00)=3.18
\end{equation*}
The new price is $3.18.