Question

At ​$1.22 million​, they closed last month for...20 percent above what they paid in​ 2007." How much did they pay in​ 2007

Answer 1

$1.02 million

Explanation:

Given

`Amount = \$1.22\ million`

`\%\ increase = 20\%`

Required

Determine the amount in 2007

Let the amount in 2007 be represented with x.

The relationship between these parameters is:

`1.22\ million = x + 20\%\ of\ x`

`1220000 = x + 20\% * x`

`1220000 = x + 0.20* x`

`1220000 = x + 0.20x`

`1220000 = 1.20x`

Divide both sides by 1.20

`(1220000)/(1.20) = x`

`1016666.67 = x`

`x = 1016666.67`

Hence, they paid $1.02 million in 2007