Chapter 4.1, Problem 23STP

To determine

To calculate: The percent increase in earnings.

Answer to Problem 23STP

Percent increase is 10% and hourly pay after two more consecutive percent increase will be $11.32

Explanation of Solution

Given information:

Initial Pay: $8.50 per hour

New Pay: $9.35 per hours

Formulae used:

  $\text{Percent}\text{change=}\frac{\text{New}\text{Amount}-\text{Original}\text{Amount}}{\text{Original}\text{Amount}}\text{×100}$

Calculation:

Now calculate percent increase as follows.

  $\begin{array}{c}\text{Percent}\text{increse}\text{=}\frac{9.35-8.50}{8.50}\times 100\\ =\frac{0.85}{8.50}\times 100\\ =\frac{85}{850}\times 100\\ =10\end{array}$

Thus the percent increase is 10%.

For each 10 percent increase the hourly pay will be multiplied by 1.1.

Thus hourly pay from $9.35 after two consecutive 10 percent increase = $1.1\times 1.1\times 9.35$ .

Now,

  $1.1\times 1.1\times 9.35=11.3135\approx 11.32$

Thus hourly pay after two consecutive percent increase will be $11.32