How would i solve this question?

In 06, 74.2 million tax returns were filed electronically. This represents a 108% increase over the year 2005. How many income tax returns were filed electronically in 2005?

Do I multiply 74.2 x 1.08?

2 answers

No.

1.08x = 74.2 million

Solve for x.
Try solving a slightly easier question for a moment. Suppose the question read "This represents a 100% increase over the year 2005". You would infer that the number of 2005 tax returns was HALF of 74.2 million. To get that, you would have had to solve the following:

2X = 74.2 million

But it wasn't 100% - it was 108%. So try solving 2.08X = 74.2 million. You should get that X is slightly less than half the 74.2 million - which would be about right if the following year the number of tax returns slightly more than doubled.