Reggie is paid by commission and earned $1,575 last month. This

month he made $1,250. By what percentage did Reggie's

earnings decrease?

Reggie's earnings decreased by 20.63%

Step-by-step explanation:

The principle of percentage decrease is simply the amount or quantity of decrement from the previous number to the final number with respect to 100 parts of the previous or original number. Let us assume that you normally purchase a loaf of bread for $70; if on a certain Tuesday morning, you learnt from the store keeper that the price of a loaf of bread has reduced to $50, you can determine the percentage decrease by subtracting the new price from the old price, dividing the result by the old price and multiplying it by 100.

That is [(70 - 50)/70] × 100

= 20/70 × 100

= 28.6%

This means that there was a 28.6% decrease in the price of bread.

Percentage was used to fix the $70 into 100 parts and the $20 decrement is now measured in relation to the 100 parts of the $70 which will then become 26.8/100 (26.8 parts out of 100 parts).

In Reggie's case, he was paid $1,575 last month and he received $1250 this month, the percentage decrease in his earnings is therefore:-

[(Previous earning - current earning)/previous earning] × 100

= (1575 - 1250)/1575 × 100

(325/1575) × 100

= 20.63%

Therefore, Reggie's earnings decreased by 20.63%

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