Question

$37.50 decreased by 4% =

Answer 1

$36

Explanation:

The original value is $37.50 so that is 100%.

A decrease of 4% from original value means that you are finding 96% of the value, since 100% -4%= 96%

So the new value is 37.50/100 ×96= $36

This is because:

100% ----- $37.50

1% --------- $0.375

96% ------- $36

or taking 96% of original value would be

96/100 × $37.50= $36

Which would give you the same answer