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If the total payroll expense of a certain business in year \(Y\) was \(\$84,000,\) which was \(20\) percent more than in

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by VJesus12 » Sun Oct 03, 2021 10:10 am
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If the total payroll expense of a certain business in year \(Y\) was \(\$84,000,\) which was \(20\) percent more than in year \(X,\) what was the total payroll expense in year \(X?\)

(A) \(\$70,000\)

(B) \(\$68,320\)

(C) \(\$64,000\)

(D) \(\$60,000\)

(E) \(\$52,320\)

Answer: A

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Re: If the total payroll expense of a certain business in year \(Y\) was \(\$84,000,\) which was \(20\) percent more tha

by Brent@GMATPrepNow » Sun Oct 03, 2021 2:34 pm
VJesus12 wrote: ↑
Sun Oct 03, 2021 10:10 am
 If the total payroll expense of a certain business in year \(Y\) was \(\$84,000,\) which was \(20\) percent more than in year \(X,\) what was the total payroll expense in year \(X?\)

(A) \(\$70,000\)

(B) \(\$68,320\)

(C) \(\$64,000\)

(D) \(\$60,000\)

(E) \(\$52,320\)

Answer: A

Source: Official Guide
We can solve this question algebraically or by testing the answer choices.

Algebraic solution
Let x = the expenses in year X
So we can write: 1.2x = 84,000
Solve: x = 84,000/1.2 = 70,000
Answer: A

testing the answer choices
(A) $70,000
1.2(70,000) = 84,000
Done!
Answer: A
Brent Hanneson - Creator of GMATPrepNow.com
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