In the IT company, there was hired a UNIX server administrator with a basic salary and with an additional clause, according to which the adding of extra server will increase the salary and salary itself will be calculated with the accuracy of the one day. It was fixed in hiring contract that adding of one extra server will increase the salary by 12%. Because of continuous money inflation, it was also stated in contract, that when the extra-administration work will terminate (it's usually a fixed-term job), the actual salary will be decreased by 11%, not by 12%. Tasks: a) During one actual year there were seven different extra server administrations - i.e. salary was raised seven times and also lowered seven times. How many percent the final salary changed in comparison with the initial salary? b) If we know that the annual inflation rate will be 3%, which percent number should stand instead of 11% for server administration termination case - in order to keep a real wage in same level? (With assuming that there will be still seven short-time extra administrations and also increasing rate 12% will remain the same.)
In the IT company, there was hired a UNIX server administrator with a basic salary and with an additional clause, according to which the adding of extra server will increase the salary and salary itself will be calculated with the accuracy of the one day. It was fixed in hiring contract that adding of one extra server will increase the salary by 12%. Because of continuous money inflation, it was also stated in contract, that when the extra-administration work will terminate (it's usually a fixed-term job), the actual salary will be decreased by 11%, not by 12%. Tasks: a) During one actual year there were seven different extra server administrations - i.e. salary was raised seven times and also lowered seven times. How many percent the final salary changed in comparison with the initial salary? b) If we know that the annual inflation rate will be 3%, which percent number should stand instead of 11% for server administration termination case - in order to keep a real wage in same level? (With assuming that there will be still seven short-time extra administrations and also increasing rate 12% will remain the same.)
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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