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x=0.03\left(x+40000\right)
Variable x cannot be equal to -40000 since division by zero is not defined. Multiply both sides of the equation by x+40000.
x=0.03x+1200
Use the distributive property to multiply 0.03 by x+40000.
x-0.03x=1200
Subtract 0.03x from both sides.
0.97x=1200
Combine x and -0.03x to get 0.97x.
x=\frac{1200}{0.97}
Divide both sides by 0.97.
x=\frac{120000}{97}
Expand \frac{1200}{0.97} by multiplying both numerator and the denominator by 100.