During this year, the budget has increased by 10 %. This increased budget is $ 242,000 . How much was the budget in the past, before the increase?

Question

During this year, the budget has increased by 10 %. This increased budget is $ 242,000 . How much was the budget in the past, before the increase?

Answer 1

The previous budget will be represented by "x" because it is unknown. That is the variable, the unknown.

Known information: current budget ($242,000) and % increase (10%)

 

Formula: %increase = (current minus previous) divided by previous

 

10% = (242,000 - x)/x Change 10% to decimal: 10/100 = 0.1

 

0.1 = (242,000 - x)/x This is your algebraic equation.

To solve it, multiply both sides by x

 

0.1x = x(242,000 - x)/x

0.1x = 242,000 - x

Add x to both sides

 

x + 0.1x = 242,000 - x + x

 

1.1x = 242,000

Divide both sides by 1.1

 

x = 242,000/1.1 = 220,000

 

The previous budget was $220,000