... $500,000. What were their profits last year?
SmartShop's profits have been growing at 5% per year. This year their profits were approximately?
- Posted:
- 3+ months ago by kvbarber76
- Topics:
- year, growing, years, profit
Details:
Answers (2)
The easiest way to figure this out is to make it into an algebraic formula
Your questions asked Smartshop's profits have been growing at 5% per year. This years profit were approximately $500,000 What were last years profits.
To figure this out we will use the letter p to signify last years profits.
So, if last years profits increased by 5% to equal 500,000
That means that (last years profits(p) + 5% of last years profits = this years profits.
p+0.05(p) = 500000
p+0.05p=500000
1.05p=500000 - now, here you would divide both the 1.05p and 500,000 by 1.05
p=476190.47619
Get a ruler in your hands. Measure things until you start to understand how a ruler works. Measure some stuff and figure out where the center is. Say you measure a book and it's 7/8" thick. You look at your ruler and see that every eighth is divided into two sixteenths, so obviously half of 7/8" is going to be 7/16". If you write that out you have 1/2 x 7/8 = 7/16. And you notice that 1/2 is divided into 2/4 and then into 4/8 and so on, so you can convert anything to anything by multiplying all the numbers on top and then all the numbers on bottom.
Other rulers are divided into 10 and 100 parts. But an inch is still an inch, so anything on one ruler can be translated to the other ruler. A half inch on one ruler is 5/10 or 50/100 on the other. An eighth inch is just 12.5 marks when you have 100 marks per inch. A metric ruler divides an inch into 25.4 parts, so a half inch would be 12.7 of those parts. Pretty simple, isn't it? Practice this a bit and people will think you went to wizard school.
Percent is simply a ruler with 100 marks. The only confusion is trying to keep track of what the marks represent, since that changes from time to time. You are given that 105 marks are worth 500,000 so each mark is worth 4761.904762 and 100 marks are worth 476,190.4762