This year, a small business has a total revenue of $63, 500. if this is 27% more than their total revenue the previous year, what was their total revenue the previous year?

Hey! Let me help you on this one.

Let's break this equation apart to better understand it!

We know that this year's revenue is $63,500, and we also know that this is 27% more than last year's revenue.

We don't know what was the last year's revenue, so let's mark this unknown variable as .

Now, time for fun stuff! Let's form an equation.



As you can see, 1.27 is a decimal form of 127% - this year's revenue compared to last year's revenue.

Let's solve this! First, we need to divide 1.27 from both sides.



Now, we need to simplify it. 



As we have mentioned before, R is the amount of money this company has received for the last year. 

Their total revenue for the previous year is $50,000.