How would i solve this question?
In 06, 74.2 million tax returns were filed electronically. This represents a 108% increase over the year 2005. How many income tax returns were filed electronically in 2005?
Do I multiply 74.2 x 1.08?
No.
1.08x = 74.2 million
Solve for x.
Try solving a slightly easier question for a moment. Suppose the question read "This represents a 100% increase over the year 2005". You would infer that the number of 2005 tax returns was HALF of 74.2 million. To get that, you would have had to solve the following:
2X = 74.2 million
But it wasn't 100% - it was 108%. So try solving 2.08X = 74.2 million. You should get that X is slightly less than half the 74.2 million - which would be about right if the following year the number of tax returns slightly more than doubled.
To solve this question, you need to reverse the calculation. Currently, you have the number of tax returns filed in 2006 (74.2 million), which represents a 108% increase over the year 2005. To find the number of tax returns filed in 2005, you need to divide the 2006 number by 1 plus the percentage increase.
Here's how you can calculate it:
1. Convert the percentage increase to decimal form by dividing it by 100. In this case, 108% becomes 1.08.
2. Divide the number of tax returns filed in 2006 by 1 plus the percentage increase. Using the formula: Number of Tax Returns in 2005 = Number of Tax Returns in 2006 / (1 + Percentage Increase)
So, to find the number of tax returns filed electronically in 2005:
Number of Tax Returns in 2005 = 74.2 million / (1 + 1.08)
Calculating this:
Number of Tax Returns in 2005 = 74.2 million / 2.08
Number of Tax Returns in 2005 ≈ 35.67 million
Therefore, approximately 35.67 million income tax returns were filed electronically in 2005.