Question

Jim Goodman, an employee at Walgreens, earned $42,000, an increase of 17.4% over the previous year. What were Jim's earnings the previous year? Note: Round to the nearest cent.

Answer 1

$35,775.13

Explanation:

You want the amount that results in $42,000 when it is increased by 17.4%.

Multiplier

A value that is increased by a fraction (p) is effectively multiplied by 1+p.

In this case, we have ...

(previous salary) · (1 +17.4%) = $42000

Solution

Dividing by the coefficient of (previous salary), we have ...

previous salary = $42000/1.174 = $35,775.13

Jim's earnings the previous year were $35,775.13.

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