The daily cost of hiring a car is increased by 12% to £26.88
Work ou the daily hire cost before the increase.
So...
x=initial
x*1.12=26.88
Therefore x=26.88
........
1.12
Answer:£24.00
You are right, 12% is indeed 0.12.
However for the percentage increase you add this to 1 to make 1.12
So you add 1+ to make it 1.12 when dealing with these types of percentage problems