The formula to calculate the New Budget (NB) is:
\[ \text{NB} = \text{CB} \times \left(1 + \frac{\text{IP}}{100}\right) \]
Where:
A budget increase refers to the rise in the amount of money allocated for a particular purpose, such as a project, department, or personal finances. It is often expressed as a percentage of the current budget. Understanding how to calculate a budget increase is essential for financial planning and management, ensuring that resources are appropriately allocated to meet growing needs or to adjust for inflation.
Let's assume the following values:
Using the formula to calculate the New Budget:
\[ \text{NB} = 50000 \times \left(1 + \frac{10}{100}\right) = 50000 \times 1.10 = 55000 \text{ dollars} \]
The New Budget is $55,000.