1 carat  of a diamond costs $6500 and there is a 28% increase in the price. What's the new cost of a 5 carat diamond?

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justaguide's profile pic

justaguide | College Teacher | (Level 2) Distinguished Educator

Posted on

The cost of 1 carat of a diamond is initially $6500. When the price goes up by 28% it is 6500*1.28 = $ 8320

The cost of a 5 carat diamond is 8320*5 = $41600

The cost of a 5 carat diamond after the 5% increase in price is $41600

thi-dallas's profile pic

thi-dallas | Student, Undergraduate | (Level 1) Valedictorian

Posted on

The price of a 5 carat diamond = (6500 X [1 + pct_increase])

In this problem the price of 5 carat diamond = 6500 X [1.28^4]=17448.30

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