Percentage Increase

Can someone please take a look at the math problem, ( ) and explain how to arrive at the answer please. Im really struggling.

Hi, The thing with that question is that really there's almost too much information so it's not surprising that you might struggle to extract what's needed. Perhaps there were more questions asked on the same pie charts? Anyway, the answer's £8,000 which can be shown as follows: Taxation this year is £20,000. This is 25% larger than last year's bill. What this means is that tax this year was 1.25 times the tax bill from last year, because "25% larger" means "the original amount plus 25%". The original amount is always 100%, so tax this year was 125%, or 125/100, or 1.25 times last year's bill. So, last year's tax bill was £20,000/1.25 = £16,000. Finally we note that last year tax was 25% of the total losses, and expenses accounted for 12.5%, then that means that expenses counted for half the amount taxes did. Therefore the expenses bill for last year came to £8,000. Hope this helps.
15 August 2012
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