Several years ago, Joe started a lawn-care business. Due to rising costs, he needs to increase his prices. He is concerned, however, because he has heard that if he raises his rates more than
, he might lose business. At right is a letter he sent to his clients.

Joe began to wonder about how the increase in his fees could be expressed in terms of a percent.

Joe wants to determine the scale factor (multiplier) for the price increase and wrote the following equation:

Explain how this equation represents this situation. What does
represent?

Solve the equation above to determine the scale factor for his change in fees. Represent this multiplier (scale factor) as a fraction, as a decimal, and as a percent.

How could this situation be represented with a line diagram? With your team, copy and complete the diagram below. Then answer and do the following: