Question

This year, a small business had a total revenue of $18,700. If this is 15% less than their total revenue the previous year, what was their total revenue the previous year?

Answer 1

$21,505

Explanation:

$18,700×115%=$18,700×115/100

=$21,505

Answer 2

The business's total revenue the previous year was $22,000.

Explanation:

Since the business's revenue is 15% less than it was the previous year, we can subtract that 15% from 100% to see what percentage of last year's revenue is the business getting now.

100% - 15% = 85%

So the business is getting 85% of what it got last year. We also know that this small business is getting $18,700 this year.

So really, this question is asking 18,700 is 85% of what?

Y = P% of WHAT?

18,700 = 85% of X

18,700 = 0.85 · X

Now that we have set this equation up, we solve for x. To get x alone, you must divide by 0.85 on both sides.

18,700 ÷ 0.85 = 0.85 · X ÷ 0.85

Simplified, this is 22,000 = X

So their total revenue the previous year was $22,000.

This is not the only way to do this - there are others, but this is one of the easiest to understand is more efficient.