Answer:
$292,372.88
Step-by-step explanation:
Let's say we want to increase some number x by 18%. We know we can't just multiply x by 18% since [tex]x > x * 0.18[/tex], which doesn't make sense if we are trying to increase x. Instead, we must multiply by 118%. This is because we want to add 18% of x back onto x. This is exactly like saying [tex]x + 0.18 * x[/tex], since that expression is equal to [tex]1.18 * x[/tex].
Now, let's say that some number y is equal to our number x that was increased by 18%. Then, we know that [tex]y = x + 0.18 * x = 1.18 * x[/tex] from our equation above. If we solve this equation for x, we find that [tex]y / 1.18 = x[/tex].
Now, notice that in this equation, y could represent the man's salary this year, and x could represent his salary last year. This is because his salary increases by 18% annually, so y is simply his last year's salary, x, increased by 18% ([tex]y = 1.18 * x[/tex]).
Finally, we can easily just plug in our numbers for y and x in our equation that's solved for x: [tex]y / 1.18 = 345,000 / 1.18 = 292,372.88 = x[/tex], and we find our answer.
