Hello,
I am working through this problem, and I am confused on how to set this up using the percent change formula, and/or what’s the best strategy to solve this without doing too much algebra. Any assitance would be greatly appreciated.
Thank you!
HWith barely any calculation, show that options A, B and C must be wrong.
150% greater than last year’s earning means it is basically 250% of the earlier earnings.
That means, $12 million x 2.5 = $30 million. (Option E)
Whenever there are any percentage related questions you could these tricks:
If they ask it is increased by 50 percent or 60 percent just multiply it by 1.5 or 1.6. Example if principle is 40,000 and it is increased by 25 percent then 40,000 x 1.25 = 50,000
Similarly if it says decreased by 30 percent or 75 percent just multiply by 0.7 or 0.25. Example if principle is 6,000 and it is decreased by 45 percent then 6,000 x 0.55 = 3,300
So basically you divide the given percentage by 100 then if increase add 1 but if it is decrease you subtract 1
so a shortcut for the above would be $12 million x 2.5 = $30 million
