The average cost of a 1 minute commercial on a leading network channel was 146,000 in the fall of 1999. This was a 8% decrease from the the cost a year earlier. What was the cost of a 1 minute commercial on the channel in the fall of 1998?
8% less ----> 100% - 8% = 92% or .92
.92x = 146000
x = 146000/.92 = $158,695.65
To find the cost of a 1 minute commercial on the channel in the fall of 1998, we need to first determine the original cost before the 8% decrease in price.
Let's represent the original cost before the decrease as x.
We know that the average cost of a 1 minute commercial on the leading network channel in the fall of 1999 was $146,000, which was an 8% decrease from the cost a year earlier.
To find the original cost in 1998, we need to find 100% of the original price since the 8% decrease is relative to the original price. We can set up the equation as follows:
x - (8% of x) = $146,000
Now, let's solve the equation:
x - 0.08x = $146,000
0.92x = $146,000
Divide both sides of the equation by 0.92:
x = $146,000 / 0.92
x = $158,695.65
Therefore, the cost of a 1 minute commercial on the channel in the fall of 1998 was approximately $158,695.65.