Question

This year, a small business had a total revenue of 89,700 . If this is 38% more than their total revenue the previous year, what was their total revenue the previous year?

Answer 1

well, their total revenue last year was "x", which oddly enough is 100%. Now, this year's revenue is 38% more than that, well, 100% + 38% = 138%, and we also know that it's 89700, so

`\begin{array}{ccll} amount&\%\\ \cline{1-2} x & 100\\ 89700& 138 \end{array} \implies \cfrac{x}{89700}=\cfrac{100}{138}\implies \cfrac{x}{89700}=\cfrac{50}{69} \\\\\\ 69x=4485000\implies x=\cfrac{4485000}{69}\implies x=65000`

Answer 2

Revenue was 55,614 the year before

Explanation:

Decay Formula: y = a*(1-r)^x

So:

y = 89700 * (1-0.38)^1

y = 55614