Business Math: $25m profits last year, up 30% over prev.

[Jnite64]

Well, I'm doing pretty good in this class, but the way this word problem is phrased has me very confused.

In news reports, profits of a company this year (T) are often compared with those of last year (L), but actual values of T and L are not always given. This year, a company had profits of $25 million more than last year. The profits were up 30%. Determine T and L from these data.

I'm looking at this and the answer just seems to be just out of reach. Thank you for your help!

 

[Denis]

(25 means 25 million)
last year = x; then this year = x + 25; 30% increase:

1.3x = x + 25 : x = 83 1/3

proof: 83 1/3 * .3 = 25

So last year was $83,333,333.33, this year $108,333,333.33 : hope they give bonuses :wink:

 

[Jnite64]

Awesome! Thank you so much. I stayed up late last night and found a similar equation that I used. You got rid of my gray area, thanks.