A Monthly Salary Is $2,537. It Is Given An Increase Of 9%. After The First Increase, It Receives A Second Increase Of 13%. What Is The New Monthly Salary After Both Increases? Round To The Nearest Cent. Do Not Put The $ In Your Answer Or Any Units.

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Understanding the Problem

In this problem, we are given a monthly salary of $2,537 that undergoes two consecutive increases. The first increase is 9%, and the second increase is 13%. Our goal is to calculate the new monthly salary after both increases.

Step 1: Calculate the First Increase

To calculate the first increase, we need to find 9% of the original salary and add it to the original salary.

First increase = 9% \times 2537
First increase = 0.09 \times 2537
First increase = 228.33

Now, we add the first increase to the original salary to get the new salary after the first increase.

New salary after first increase = 2537 + 228.33
New salary after first increase = 2765.33

Step 2: Calculate the Second Increase

Next, we need to calculate the second increase, which is 13% of the new salary after the first increase.

Second increase = 13% \times 2765.33
Second increase = 0.13 \times 2765.33
Second increase = 359.67

Now, we add the second increase to the new salary after the first increase to get the final salary after both increases.

New salary after second increase = 2765.33 + 359.67
New salary after second increase = 3125

Rounding to the Nearest Cent

Finally, we need to round the new salary after both increases to the nearest cent.

Rounded new salary = 3125.00

Conclusion

In this problem, we calculated the new monthly salary after two consecutive increases. The original salary was $2,537, and it received a 9% increase followed by a 13% increase. The new salary after both increases is $3,125.00.

Key Takeaways

  • To calculate the first increase, we found 9% of the original salary and added it to the original salary.
  • To calculate the second increase, we found 13% of the new salary after the first increase and added it to the new salary after the first increase.
  • Finally, we rounded the new salary after both increases to the nearest cent.

Real-World Applications

This problem can be applied to real-world scenarios where salaries are increased over time. For example, an employee may receive a 9% raise followed by a 13% raise, and we need to calculate the new salary after both increases.

Common Mistakes

  • Not rounding the new salary after both increases to the nearest cent.
  • Not calculating the second increase correctly.
  • Not adding the second increase to the new salary after the first increase correctly.

Tips and Tricks

  • Always round the new salary after both increases to the nearest cent.
  • Make sure to calculate the second increase correctly.
  • Double-check your calculations to ensure accuracy.
    Frequently Asked Questions: Salary Increases =============================================

Q: What is the formula for calculating a salary increase?

A: The formula for calculating a salary increase is:

New salary = Original salary + (Original salary * Increase percentage)

For example, if the original salary is $2,537 and the increase percentage is 9%, the new salary would be:

New salary = 2537 + (2537 * 0.09) New salary = 2537 + 228.33 New salary = 2765.33

Q: How do I calculate a percentage increase?

A: To calculate a percentage increase, you need to multiply the original salary by the increase percentage. For example, if the original salary is $2,537 and the increase percentage is 9%, the calculation would be:

Percentage increase = Original salary * Increase percentage Percentage increase = 2537 * 0.09 Percentage increase = 228.33

Q: What is the difference between a percentage increase and a dollar increase?

A: A percentage increase is a percentage of the original salary, while a dollar increase is a fixed amount of money. For example, if the original salary is $2,537 and the increase is 9%, the percentage increase would be $228.33. If the increase is a dollar amount, such as $200, the new salary would be:

New salary = Original salary + Dollar increase New salary = 2537 + 200 New salary = 2737

Q: Can I apply multiple increases to a salary?

A: Yes, you can apply multiple increases to a salary. For example, if the original salary is $2,537 and the first increase is 9%, followed by a second increase of 13%, the calculation would be:

First increase = Original salary * First increase percentage First increase = 2537 * 0.09 First increase = 228.33

New salary after first increase = Original salary + First increase New salary after first increase = 2537 + 228.33 New salary after first increase = 2765.33

Second increase = New salary after first increase * Second increase percentage Second increase = 2765.33 * 0.13 Second increase = 359.67

New salary after second increase = New salary after first increase + Second increase New salary after second increase = 2765.33 + 359.67 New salary after second increase = 3125

Q: How do I round a salary to the nearest cent?

A: To round a salary to the nearest cent, you need to look at the decimal portion of the salary. If the decimal portion is less than 0.05, you round down to the nearest cent. If the decimal portion is 0.05 or greater, you round up to the nearest cent. For example, if the salary is $3124.99, you would round down to $3124. If the salary is $3125.01, you would round up to $3125.

Q: What are some common mistakes to avoid when calculating salary increases?

A: Some common mistakes to avoid when calculating salary increases include:

  • Not rounding the new salary to the nearest cent
  • Not calculating the percentage increase correctly
  • Not adding the increase to the original salary correctly
  • Not double-checking the calculations for accuracy

Q: How can I apply salary increases in real-world scenarios?

A: Salary increases can be applied in real-world scenarios such as:

  • Employee raises
  • Cost-of-living adjustments
  • Performance-based bonuses
  • Merit increases

By understanding how to calculate salary increases and applying them correctly, you can ensure that your employees are fairly compensated and that your business is running smoothly.