Question

This year, a small business had a total revenue of 20,100. If this is 34% more than their total revenue the previous year, what was their total revenue the previous year?

Answer 1

There total revenue was like 7k or something

Answer 2

15,000

Explanation:

The base for a percentage increase is the original amount. To find the increased value, the percentage of the original amount is added to the original amount.

Setup

Using the relation for a percentage increase, we can write the equation ...

(last year's revenue) + 34% × (last year's revenue) = (total revenue)

(last year's revenue) × (1 +0.34) = (total revenue)

1.34(last year's revenue) = 20,100

Solution

We can divide by the coefficient of "last year's revenue" to find its value:

last year's revenue = 20,100/1.34 = 15,000

Their total revenue the previous year was 15,000.