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

[VJesus12]

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

[Brent@GMATPrepNow]

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