The cost of living last year went up 12%. Fortunately, Alice Swanson got a 12% raise in her salary from last year. This year she is earning $26,950. How much did she make last year?

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let x be the amount of money Alice earned. after an increase by 12%, then the salary was $26950. This gives an equation of;

x+ (12/100)x=$26950

x+0.12x=$26950

1.12x= $26950

divide both sides by 1.12 to remain with x on the left side;

(1.12x)/1.12=$26950/1.12

x= $24,062.5 is what Alice made the previous year.

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