When we are talking about a percentage greater than or less then we take that percentage and add it to 100% 

If you are looking for a smaller number then we would divide the number by 100%. + Increase percentage

If you are looking for a big number then we would multiply the number

 

Question1

A  house sold for $320,000. This selling price represented a 18% profit over what he had originally paid for the house. What was the original price of the home?

A.$283,184.53

B.$271,186.41

C.$262,400

D. $267,543 

When we are talking about a percentage greater than or less then we take that percentage and add it to 100% In this case that would be 118% If you are looking for a smaller number then we would divide the number by 118%.

If you are looking for a big number then we would multiply the number by 118% The problem gives the number of 320,000 which is more than the original price as it is stated that there was a profit. Therefore we are looking for a smaller number. Thus we want to divide to get the original price of the home before the profit was made.

100% + 18% = 118% Move the decimal over two places to get 1.18

$320,000 divided by 1.18 = $271,186.41

 

 

Question 2 

A condo sold for $160,350, the amount was 9% more than the original cost of the studio. The cost of the Condo as:

A. $157180

B. $137,610

C. $144,910

D. $147,110

 

Answer

Cost (100%) + Profit (9%) - $160,350

109% = $160,350

Divide the original price by the percentage amount because we are looking for a number the one that is given.

Move the decimal over two spots when converting a percentage to a decimal.

$160,350 divided by 1.09 = $147,110