Doug C. answered 11/27/18
Math Tutor with Reputation to make difficult concepts understandable
So, how to you increase an amount by 5%? You take 5% of that amount, add to the original amount and you have the new amount.
In this case we do not know the original amount/price, so let x = original amount.
Then 5% of x gives the amount of increase, add that onto the original amount, to get the new amount ($5.60).
The equation that models this situation:
x + .05x = 5.6
1.05x = 5.6.
Now how do you solve for x at this point? Divide both sides by 1.05.
So, x = 5.6/1.05. Likely you are allowed to use a calculator at this point.