1. The problem is to find the grossed-up amount when you want to receive $800 after a 20% deduction.
2. The formula for grossing up is: $$\text{Gross Amount} = \frac{\text{Net Amount}}{1 - \text{Deduction Rate}}$$
3. Here, the net amount is $800 and the deduction rate is 20%, or 0.20.
4. Substitute the values into the formula: $$\frac{800}{1 - 0.20} = \frac{800}{0.80}$$
5. Simplify the denominator: $$\frac{800}{0.80}$$
6. Divide 800 by 0.80: $$800 \div 0.80 = 1000$$
7. So, the gross amount before the 20% deduction is $1000.
8. This means if you start with $1000 and deduct 20%, you will be left with $800.
Gross Up Calculation 07B4Dc
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