Question

Last year, the city of Springdale experienced a budget deficit of $846,790. In comparison, the expected deficit for this year is 40% less. What is this year's expected deficit?

Answer 1

If the expected deficit for this year is 40% less, then

$\frac{\text{ expected deficit-previous deficit}}{\text{previous deficit}}\cdot100=-40\text{ \%}$

The previous deficit was $846,790, then this year's expected deficit is:

$\begin{gathered} \frac{\text{ expected deficit-}846,790}{846,790}=-0.4 \\ \text{expected deficit-}846,790=-0.4\cdot846,790 \\ \text{expected deficit-}846,790=-338,716 \\ \text{expected deficit=}-338,716+846,790 \\ \text{expected deficit=\ }508,074 \end{gathered}$