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SAT Math : How to find the percent of decrease

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Example Question #18 : Percent Of Change

In his most recent film, it was estimated that Joaquin Phoenix was paid $5\%$ $\displaystyle 5\%$ of the $\$23,000,000$ $\displaystyle \$23,000,000$ budget. In his next roll, he is expected to make $15\%$ $\displaystyle 15\%$ less. How much money should Joaquin expect to make for his next film?

Possible Answers:

$\$2300000$ $\displaystyle \$2300000$

$\$1250000$ $\displaystyle \$1250000$

$\$172500$ $\displaystyle \$172500$

$\$977500$ $\displaystyle \$977500$

$\$652500$ $\displaystyle \$652500$

Correct answer:

$\$977500$ $\displaystyle \$977500$

Explanation:

First, we find how much Mr. Phoenix made in his most recent movie

$0.05 * 23000000 = \$1,150,000$ $\displaystyle 0.05 * 23000000 = \$1,150,000$

Then, we decrease this by fifteen percent according the to the formula:

$\\A = P(1 - r) \\A = 1150000(1- 0.15) \\A = \$977,500$ $\displaystyle \\A = P(1 - r) \\A = 1150000(1- 0.15) \\A = \$977,500$

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SAT Math : How to find the percent of decrease

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Example Question #18 : Percent Of Change

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