Question

The pie chart of the different categories for the Soccer League 2022 is shown here.

For the Soccer League 2022 budget, an additional $5 million has been allocated for media rights, albeit keeping the budget unchanged. If the budget for media rights grew by 5% of its value in 2021, calculate the total value of the tournament budget for 2022.

• A. $500 million
• B. $600 million
• C. $250 million
• D. $200 million

Answer 1

The correct option is A $500 million

Given, increase in budget of media rights is $5 million.

Media rights budget for 2021 = x

$\therefore \text{Media rights budget for 2022}=x+x\times \frac{5}{100}=\frac{105x}{100}$

Given media rights budget for 2022 is 21% of the total budget.
$⟹\frac{105x}{100}=21\%\text{of total budget}$
$⟹x=21\%\text{of total budget}\times \frac{100}{105}$
$⟹x=20\%\text{of total budget}$

Increase in budget of media rights =
$\text{Media rights budget of 2022}-$
$\text{Media rights budget of 2021}$

$=(21\%-20\%)\text{of total budget}$
[$\because$ Budgets of 2021 and 2022 are equal]

$=1\%\text{of total budget}$

Given, increase in budget of media rights is 5 million.

So, we can write:
$\therefore \$5\text{million}=1\%\text{of total budget}$
$\Rightarrow 5=\frac{1}{100}\times \text{Total budget}$
$\Rightarrow \text{Total budget}=5\times 100=\$500\text{million}$

The total value of the tournment budget is $500 million in 2022.