To get back to your 44,863 value you have to divide 43,742 by .975.

The reason being 2.5% of 43,742 is not the same as 2.5% of 44,863.

To go back 5 years use the formula =44,863*(1-.025)^5
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Regards,
Dave


"Julie" wrote:

I get salary information for 2005. I want to take that salary back in time
for five years by decreasing the amount by 2.5% per year. When I use the
formula 44,863*(1-0.025) I get 43,742. But when I multiply 43,742 by 2.5% I
get 1093.55. That number added to 43,742 is 44,836 (rounded), not 44,863.
What am I doing wrong? (I submitted this question last night, but I cannot
locate it anywhere and have not been notified of any replies, so I may or may
not have submitted it properly. If duplicated elsewhere please excuse.)