How to find the tax

Question

Find last years salary if, after a 2% pay raise, this years salary is $31,110

Answer 1

This year's salary represents 102% of last year's salary due to the following:

Last Year 100%

Raise 2%

Total 102%

Using this information you will take this year's salary - $31,110 and divide by this year's percentage - 102%.

So your formula will be $31,110/1.02 to give you last year's salary of $30,500.