PSAT Math Multiple-Choice Question 513: Answer and Explanation

Question: 513

Brent, an accounting firm owner, donates a specific percentage of his firm’s annual profit to charity. If Brent’s firm made $654,000 last year and donated $52,320, how much money will his firm donate if its annual profit is $575,000 this year?

• A. $46,000
• B. $59,508
• C. $79,000
• D. $131,320

Correct Answer: A

Explanation:

A

The question asks for an amount that is based on a specific percentage every year. To find the percentage, divide the amount donated by the firm last year by the amount of profit in that same year. The specific percentage is . This same percent will be applied to the current year's profit, so there is no need to convert it to the value 8%. To find the amount donated for this year, multiply this year's profit of $575,000 by 0.08 to get $575,000 × 0.08 = $46,000. The correct answer is (A).