Answer:
$29,851.24
Step-by-step explanation:
The salary started as x.
Each year it was increased 15%.
A full amount is 100% of the amount. When you add 15% to the amount, you now have 115% of the amount.
115% as a decimal is 1.15; that means that to increase an amount by 15%, multiply the amount by 1.15
For example, let's say you want to know what is a 15% increase on 100. Start with 100. 15% of 100 is 15, so if you add 15% to 100 you expect to get 115.
Now multiply 1.15 by 100. You also get 115 showing you that multiplying a number by 1.15 is the same as adding 15%.
Now let's get back to our problem.
The salary started as x.
Each year, the increase in salary was 15% of the previous salary.
After 1 year the salary is 1.15x.
After 2 years, the salary is 1.15(1.15x).
After 3 years, the salary is 1.15(1.15(1.15x)) = (1.15^3)x
We are told that the salary became $45,400 after the three 15% increases, so
(1.15)^3 * x = 45,400
Multiply out 1.15^3 as 1/15 * 1.15 * 1.15 = 1.520875
1.520875x = 45,400
Divide both sides by 1.520875.
x = 45,400/1.520875
x = 29,851.24
Answer: $29,851.24
