Here’s and example of a **SMART MATH** problem for **PERCENTAGES.**

**Problem**

**Problem**

With the profit margin increased, a traders earns 25% more than before. If his earnings now are $800 per month, what was it before?

- $600
- $625
- $640
- $675
- $720

**The Usual Method**

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Let the earning of the trader initially be $*x*. With an increase in the margins, the earning is now $1.25*x*

But 1.25*x* = $800

**(Ans: 3)**

*Estimated Time to arrive at the answer = 30 seconds.*

**Using Technique**

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If earning increase by 25%, to get the original earnings, the new earning should be reduced by 20% (See concept explained in the section of Percentages Stuff to Remember)

Thus old earnings = $800 less 20% = 800 – 160 = 640

Hence option ‘3’.

**(Ans: 3)**

*Estimated Time to arrive at the answer = 10 seconds.*

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