A family is renting an apartment. For 2007, the rent is $1376 per month. The monthly rent in 2007

A family is renting an apartment. For 2007, the rent is $1376 per month. The monthly rent in 2007 is 7.5% higher than the monthly rent in 2006. Determine the monthly rent in 2006.

7.5% as a decimal is 0.075
To increase a value by 7.5%, we multiply by 1.075

Calculate Rent Increase
R(2007) = R(2006) * 1.075
R(2007) = 1376 * 1.075
R(2007) = 1,479.20