Example 1, Salary after a 12% pay cut is $61,600. What was it before?
$70,000- Identify the values New = $61,600, Rate = 12%
- Express the rate as a multiplier 1 − 12 ÷ 100 = 0.88
- Divide the new value by the multiplier 61,600 ÷ 0.88 = $70,000
- Check 70,000 × 0.88 = 61,600 ✓