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?

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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.