A union contract specifies a 6 percent salary increase plus a $450 bonus for each employee. For a certain employee, this is equivalent to an 8% salary increase. What was this employee's salary before the new contract?
a) $21500
b) $22500
c) $23500
d) $24300
e) $25000
How will i come up with the correct Option?
OA B
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A union contract specifies a 6 percent salary
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Adding a $450 bonus to a 6% increase in salary is the equivalent of an 8% increase in salary.lheiannie07 wrote:A union contract specifies a 6 percent salary increase plus a $450 bonus for each employee. For a certain employee, this is equivalent to an 8% salary increase. What was this employee's salary before the new contract?
a) $21500
b) $22500
c) $23500
d) $24300
e) $25000
Implication:
$450 must constitute 2% of the salary, with the result that adding $450 to a 6% increase in salary yields a total increase of 8%.
Since $450 constitutes 2% of the salary, we get:
450 = (2/100)S
450 = (1/50)S
(50)(450) = S
S = 22500.
The correct answer is B.
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Solution:BTGmoderatorDC wrote: ↑Fri Oct 27, 2017 4:19 amA union contract specifies a 6 percent salary increase plus a $450 bonus for each employee. For a certain employee, this is equivalent to an 8% salary increase. What was this employee's salary before the new contract?
a) $21500
b) $22500
c) $23500
d) $24300
e) $25000
How will i come up with the correct Option?
OA B
We can create the equation:
1.06n + 450 = 1.08n
450 = 0.02n
45,000 = 2n
22,500 = n
Alternate Solution:
The bonus amount of $450 must be equivalent to a 2% pay raise. Letting n = the pre-raise salary, we have
0.02n = 450
n = 22,500
Answer: B
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