Last year, Smith's Auto Shop made gross revenue of $460,000. This year, their gross revenue increased significantly - by an amazing 25%. What was the gross revenue this year?
A)$525,000
B)$550,000
C)$560,000
D)$575,000
E)$585,000

Question

Quizplus · Accepted Answer

To find 25% of a given number, simply halve the number, then halve it again. In this example, half of 460,000 is 230,000, then half of 230,000 is 115,000. Therefore, 25% of $460,000 is $115,000. Add $115,000 to the original $460,000 to find the gross revenue for the year - $575,000.
Key takeaway: It is helpful to know shortcuts for mentally calculating certain percentages. To find 10% of a number, drop the last digit. To find 20% of a number, drop the last digit, and double the resulting number. To find 25% of a number, halve the number twice.

Last Year, Smith's Auto Shop Made Gross Revenue of $460,000