Problema Solution
A local business is reviewing their expenditures. They found that they spend 1/3 of their income on payroll, another half goes back into the business to purchase inventory and pay for facilities, 1/3 of the remainder goes paying off their original business loan. If they have $100,00 left to reinvest in their company, what are their total expenditures?
Answer provided by our tutors
Let 'x' represent the income.
(1/3)x + (1/2)x + (1/3)(x - (1/3)x - (1/2)x) + 100 = x
........
click here to see the equation solved for x
........
x = $900
The total expenditures are 900 - 100 = $800.