Question

the commission of a broker remains unchanged through the rate of commission is increased from 4 % to 5% what is the percentage of slump in the business​

Answer 1

Let S1 be initial sales and S2 be sales after increase in commission %. We need to find S1−S2/S1

Given S1∗4%=S2∗5% =>S2/S1=4/5. subtract both sides of the equation from 11 to get

Or, 1−S2/S1=1−4/5

S1-S2/S1= 1/5 = 20%

Answer 2

The percentage of slump in the business​

Solution:

Let the business value change from A to B

Commission of a broker remains unchanged through the rate of commission is increased from 4 % to 5%

Then, 4% of A = 5% of B

$\frac{4}{100} \times A = \frac{5}{100} \times B\\\\B = \frac{4A}{5}$

Then, change in business is given as:

$Percentage\ change\ in\ business = \frac{ A - \frac{4A}{5} }{A} \times 100 \% \\\\ Percentage\ change\ in\ business = \frac{100}{5} = 20 \%$

Thus percentage of slump in the business​ is 20 %

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