Money and percents

Question

I’ve done this one a few times and I’m off by a number but idk where.

The cost of living last year went up 5%. Fortunately, Alice Swanson got a 5% raise in her salary from last year. This year she is earning 54,880. How much did she make last year?

Answer 1

e represents her earnings last year

54880 = e + 0.05e

Can you solve for e and answer?

Answer 2

Last Year + 5%of Last Year = this year = 54,880 = (1+.05)*Last Year

So, This Year/(1+.05) = Last year

or Last year =54,880/1.05 = 52,266.67