SOLUTION: Peter has an annual salary of $29,523.60 for his second year on the job. If this is 6.2% more than his first year salary, how much did he earn his first year?

Question 43428: Peter has an annual salary of $29,523.60 for his second year on the job. If this is 6.2% more than his first year salary, how much did he earn his first year?
Answer by jmg(22) (Show Source): You can put this solution on YOUR website!
This is kind of hard to explain unless you are good with percents.
He got a 6.2% raise. That means he makes what he used to make (100%) plus the 6.2%.
So now he is making 100% + 6.2% = 106.2% is what he is making now
You want to know 106.2% of what number is $29523.60.
If equation form,
106.2% * n = 29523.60 [change percent to decimal: 2 places left]
1.062 * n = 29523.60 so divide by 1.062 on both sides
n = $27,800 --> this is your answer

Double check. 27800 * 6.2% = 27800 * 0.062 = 1723.60 would be the raise.
Add that onto 27800 and you get 29523.60.

RELATED QUESTIONS
Peter works as an electrical engineer for an electrical firm,His total salary for his... (answered by KMST)

Jon begins a new job with an annual salary of $42,000 for his first year of employment, a (answered by stanbon)

Larry saves 15% of his annual salary for retirement. This year his salary was $2,000... (answered by Theo)

Bob is hired by an accounting firm at a salary of $60,000 per year. Three years later his (answered by josmiceli)

Bill began his job with a salary of $25,500 per year. He received a 10% raise at the... (answered by fractalier)

(Could you help me solve this problem, I'm not sure Is it use a(1+r)^1-r formula? 20.... (answered by checkley77)

James has two job offers. Massy offers James the job with an initial annual salary of... (answered by ikleyn)

Tyler gets a starting salary of 22,600, with annual raises of 800. what will his salary... (answered by lenny460)

Not too sure if this is a trick question? Please help? Bob has two jobs offers with... (answered by stanbon)