Answer:
450
Explanation:
Let the number be represented by x. "an increase of 20%" can be represented as:
100% x + 20% x ⇒ 120% x
We also know that 540 is equivalent to 120% x. We can use this information set up a simple equation.
540 = 120% x
Now, we just have to isolate the variable. Percentages can also be represented as fractions.

Using this information, we can convert 120% x into...
540 = 120/100 × x
We can simplify the fraction using the GCF (greatest common factor) of the two numbers.
540 = 6/5 × x
Multiply both sides by 5
2700 = 6x
Divide both sides by 6
x = 450
The original number was 450.