Answer:
$5000
Step-by-step explanation:
The original price is x. I'll leave off the unit ($) until the end.
The final price is 5304 after the two price increases. We can write this as:
x*(1.02) [Increase of 2% as indicated by the 1.02 factor]
The second increase is calculated on the basis of this new number, and can be written as:
x(1.02)*(1.04) [The first increase is increased by 4% by the 1.04 factor]
The final result is $5304, so we can write:
x(1.02)*(1.04) = 5304 [The result of the two increases is 5304]
Rearrange and solve:
x = (5304)/(1.02*1.04)
x = $5000
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Check: Does 5000 become 5304 after two sequential increases of 2% and 4%?
Step 1: (5000)(1.02)=5100
Step 2: (5100)*(1.04)= 5304 YES
The original price was $5000.
