Question

a bank efficiency ratio is the ratio of a banks expenses to its revenue, expressed as a percentage. if a bank has $222 million dollars in expenses and an efficiency ratio of 75%, what is its revenue in millions of dollars? show calculator how do i enter a student - produced response on the sat? show me!

Explanation:

Step1: Define the formula

The efficiency ratio is given by the formula: $\text{Efficiency Ratio} = \frac{\text{Expenses}}{\text{Revenue}} \times 100\%$. We know the efficiency ratio is $75\%$ (or $0.75$ in decimal) and expenses are $\$222$ million. Let $R$ be the revenue. So, $0.75=\frac{222}{R}$.

Step2: Solve for revenue

To solve for $R$, we can rearrange the formula: $R=\frac{222}{0.75}$. Calculating this, $222\div0.75 = 296$.

Answer:

296