last year, the company budget rose 12%, this year the rate of increase is down 25%. this year's budget is?

Question

last year, the company budget rose 12%, this year the rate of increase is down 25%. this year's budget is what percent

Answer 1

Year one:
Company's budget = 100%.

Year two:
Company's budget: = 100% + 12%
Company's budget: = 112%

Year three:
The rate of increase for last year was 12%.
25% of 12% is 3% (25/100 * 12).
12% - 3% = 9% (the increase is down).
Company's budget = Last years rate + this years increase.
Company's budget: = 112% + 9%
Company's budget: = 121%.

So the company's budget is 21% of year's one budget.

Answer 2

84% of 2 years ago.

2 years ago's budget = a
Last years budget = b = a + 12%a
This years Budget = c = b - 25%b = a + 12%a - 25%(a + 12%a)
c = a + 12%a - 25%a - 3%a = a - 16%a = a( 1- 16%) = 84%a

OK. Sorry I read the question wrong.
2 years ago's budget = a
Last years budget = b = a + 12%a
This years buddget = c = b + 12%b -(12% X 25%)b = b(1+12% -3%) = b(1+9%) = (a +12%a) (1+9%) = a(1+12%)(1 +9%) = 1.22a = 122%a

Answer 3

I would assume, the 12% increase is down 25%, which would be

12 - 12(.25)

which equals

9%

So this years budget would be 109% of last year's budget
or
112 + 112*.09 or 122.08%, the first year
I suppose, with just that data given

Answer 4

rate of increase down 25% = 0.75*12% = 9% increase, so this years budget is 109% of last year's

Answer 5

Brenmore's method is correct
Only that you have to make a concluding statement that the company's budget is 21% more than the last-but-oneth (base) year