Results 1 to 5 of 5

Thread: Adding 1 in Business Math

  1. #1

    Talking Adding 1 in Business Math

    I would like to better understand why I get two different answers. Can someone break this down for me?

    116,627/divided by 3 people=38,875.66

    However, I frequently see this in business finance, written as 116,627/1.3. I can only assume that this means 1/3=.30+1. What I don't know is why is it done this way versus above. I get two vastly different answers. Can someone explain step by step.

    The total calc is something like this:

    240,000-(116,627/1.3)=150,286.90

    Please help!

  2. #2
    New Member
    Join Date
    Jan 2018
    Location
    Boston
    Posts
    35
    Could you provide a link to an example? E.g. newspaper article.

  3. #3
    I don't. In general in a lot of business math. I see 1 added to decimals. What purpose does the 1 serve?

  4. #4
    Elite Member mmm4444bot's Avatar
    Join Date
    Oct 2005
    Location
    Seattle
    Posts
    9,347
    Quote Originally Posted by samyscraps01 View Post
    in a lot of business math What purpose does the 1 serve?
    Instead of guessing, we would like to know the context. If you're unable to type a specific example, please take a picture of an example you're looking at and post it here. Thanks!
    "English is the most ambiguous language in the world." ~ Yours Truly, 1969

  5. #5
    Full Member
    Join Date
    Nov 2017
    Location
    Rochester, NY
    Posts
    599
    Quote Originally Posted by samyscraps01 View Post
    I would like to better understand why I get two different answers. Can someone break this down for me?

    116,627/divided by 3 people=38,875.66

    However, I frequently see this in business finance, written as 116,627/1.3. I can only assume that this means 1/3=.30+1. What I don't know is why is it done this way versus above. I get two vastly different answers. Can someone explain step by step.

    The total calc is something like this:

    240,000-(116,627/1.3)=150,286.90

    Please help!
    I think you may be referring to percentage increases.

    If I'm right, then your example is not about 3 people, but about undoing a 30% increase: if the amount after a 30% increase is 116,627, then the original amount was multiplied by 130% (that is, 30% was added to 100%), so to get back the original amount, you divide by 130% = 1.30: 116,627/1.30 = 89713.08 (rounded).

    The important thing here is that the calculation you do depends on the problem you are solving. If you tell us the problem for which you saw 240,000-(116,627/1.3), then we can tell you why they did that. But you haven't explained what the 240,000 is.

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •