Let x be the initial salary before the two increases took effect.
Notice that a total increase of 7.25%+2.2%=9.45% was applied.
Express 9.45% of x by multiplying x times 9.45/100:
[tex]\frac{9.45}{100}x[/tex]This increase is added to the initial salary x:
[tex]x+\frac{9.45}{100}x=87,609.50[/tex]Isolate x from the equation to find its value:
[tex]\begin{gathered} \Rightarrow x+0.0945x=87,609.50 \\ \Rightarrow(1+0.0945)x=87,609.50 \\ \Rightarrow1.0945x=87,609.50 \\ \Rightarrow x=\frac{87,609.50}{1.0945} \\ \Rightarrow x=80,045.23\ldots \end{gathered}[/tex]Therefore, Nermal's annual salary before the two increases took place, was:
[tex]\text{ \$80,045.23}[/tex]