**Official Guide**

If the total payroll expense of a certain business in year Y was $84,000, which was 20 percent more than in year X, what was the total payroll expense in year X?

A. $70,000

B. $68,320

C. $64,000

D. $60,000

E. $52,320

OA A

00:00

**A**

**B**

**C**

**D**

**E**

If the total payroll expense of a certain business in year Y was $84,000, which was 20 percent more than in year X, what was the total payroll expense in year X?

A. $70,000

B. $68,320

C. $64,000

D. $60,000

E. $52,320

OA A

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We can solve this question algebraically or by testing the answer choices.

Let x = the expenses in year X

So we can write: 1.2x = 84,000

Solve: x = 84,000/1.2 = 70,000

Answer: A

(A) $70,000

1.2(70,000) = 84,000

Done!

Answer: A