Question

A company makes cars.

The company’s income in 2017 was $500 000 more than the company’s income in 2016
The company’s income in 2017 was 8% more than the company’s income in 2016

Work out the company’s income in 2016?

Answer 1

$6,250,000

Explanation:

Let :

2016 income = x

2017 income = x + $500,000

2017 income is 8% more than company's income in 2016

Thus ;

8% of 2016 income = 500000

0.08x = 500,000

x = 6,250,000

Hence, the company's income in 2016 is $6,250,000