A family pays $45 each month for cable television. The cost increases 7%. a. How many dollars is the increase?
b. What is the new monthly cost?

The initial cost is $45. To determine the increase, you need to follow two steps.

First you have to find what 7% of the original $45 is. This will tell us how much the cost will increase by.
To find 7% of $45, you need to multiply .07 x 45 = 3.15
This tells us that 7% of $45 = $3.15

Next, you have to add the increase to the original cost. This will be the new monthly cost.
$45 + $3.15 = $48.15

It increases $3.15 and the new monthly cost is $48.15