Final answer:
The original budget before the 5% increase was $45,000, as calculated by dividing the increased budget amount of $47,250 by 1.05.
Step-by-step explanation:
To find the original budget before the increase, we need to work backward from the increased amount. If the budget has increased by 5% and the new budget amount is $47,250, we can set up the equation where original budget + (original budget x 0.05) = $47,250.
To solve for the original budget, we divide the increased budget by 1.05 (since 100% + 5% = 105%, or 1.05 in decimal form). This gives us the original budget amount before the 5% increase.
Therefore, we can calculate the original budget using the formula:
Original budget = Increased budget / 1.05
Original budget = $47,250 / 1.05
Original budget = $45,000
So, the budget before the increase was $45,000.