(b) Joe's savings increased by \( 4.5 \% \). His savings are now \( £ 125.40 \) What were his savings before the increase?

To find Joe's savings before the increase, we can set up the equation based on the information given. If his savings increased by \( 4.5\% \), this means his new savings \( £125.40 \) is equal to \( 100\% \) plus \( 4.5\% \) of his original savings. Let \( x \) be his original savings. We can express this relationship as: \( 1.045x = 125.40 \) Now, divide both sides by \( 1.045 \): \( x = \frac{125.40}{1.045} \) Calculating this gives: \( x \approx 120 \) So, Joe's savings before the increase were approximately \( £120 \). Want a fun fact? The concept of percentages dates back to ancient civilizations, with evidence found in Roman and Babylonian cultures! They used different forms of ratio calculations for trade, taxes, and even for agricultural yields, laying the groundwork for how we handle percentages today. And speaking of savings, it’s always a smart move to keep an eye on your interest rates. If you find a savings account with a higher interest rate, you could be looking at quite a return on your investment over time—just like Joe! Exploring high-yield savings options can help your money grow faster.