what was the salary in Louisville (before moving)?

Question

4.) A company wants to relocate an employee from Louisville, Kentucky to San Francisco and offers a pay increase of 14% to offset the increased cost of living. If the salary in SF is $65,550, then what was the salary in Louisville (before moving)?

Answer 1

Lets say that his initial salary is x. An increase of 14% is the same thing as multiplying by a factor of 1.14. This gives us:

 

x * 1.14 = 65,550

 

We need to solve for x. In order to do so divide both sides of the equation by 1.14. which will give us

 

x = 65,550 / 1.14

x = 57,500