A local Dunkin' Donuts shop reported that its sales have increased exactly 12% per year for the last 2 years. This year's sales were $81,427. What were Dunkin' Donuts' sales 2 years ago? (Round each year's sales to the nearest dollar.)
If the sales 2 years ago were x, the sales last year were 1.12x and this year's sales were 1.12 * (1.12x). We can write 1.12 * (1.12x) = 81427 so that means x = $64913.
