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\frac{2500}{2000}=1+x\times \frac{5}{100}
Divide both sides by 2000.
\frac{5}{4}=1+x\times \frac{5}{100}
Reduce the fraction \frac{2500}{2000} to lowest terms by extracting and canceling out 500.
\frac{5}{4}=1+x\times \frac{1}{20}
Reduce the fraction \frac{5}{100} to lowest terms by extracting and canceling out 5.
1+x\times \frac{1}{20}=\frac{5}{4}
Swap sides so that all variable terms are on the left hand side.
x\times \frac{1}{20}=\frac{5}{4}-1
Subtract 1 from both sides.
x\times \frac{1}{20}=\frac{5}{4}-\frac{4}{4}
Convert 1 to fraction \frac{4}{4}.
x\times \frac{1}{20}=\frac{5-4}{4}
Since \frac{5}{4} and \frac{4}{4} have the same denominator, subtract them by subtracting their numerators.
x\times \frac{1}{20}=\frac{1}{4}
Subtract 4 from 5 to get 1.
x=\frac{1}{4}\times 20
Multiply both sides by 20, the reciprocal of \frac{1}{20}.
x=\frac{20}{4}
Multiply \frac{1}{4} and 20 to get \frac{20}{4}.
x=5
Divide 20 by 4 to get 5.