A company made a profit of $238 000. This represents a 10% profit increase compared to the previous year.To the nearest dollar, the profit in the previous year was
Question
A company made a profit of $238 000. This represents a 10% profit increase compared to the previous year.To the nearest dollar, the profit in the previous year was
Solution
To find the profit of the previous year, we need to understand that the $238,000 is 110% of the previous year's profit (100% of the original profit plus the 10% increase).
Step 1: Set up the equation. Let X be the profit from the previous year. We know that 110% of X is equal to $238,000. This can be written as:
1.10 * X = $238,000
Step 2: Solve for X. To do this, divide both sides of the equation by 1.10:
X = $238,000 / 1.10
Step 3: Calculate the value of X.
X = $216,363.64
So, the profit in the previous year was approximately $216,364 when rounded to the nearest dollar.
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