Jerome earns $42,000 per year at his job. if he gets a 7% raise,what is his new salary

Question

Trying to find his new salary

Answer 1

Jerome earns 42,000. 

 

Two different ways to solve:

 

a) think of his salary as getting 100%, and they want to add another 7% for the next year for his raise, so the total would be 107%. Multiply 107% times his currently salary to get the new salary.

 

1.07* 42,000  = 44,940

 

b) next option is to multiply the 7% times 42,000. Thats what the increase would be and then add that to the current salary. 

 

.07* 42,000 = 2,940 

 

2,940 +42,000 = 44,940 

 

Both ways get you the same answer. 

Answer 2

The simplest way to solve this is S = E(1+r)

 

S = New Salary

E = Current Earnings

r = raise percent. Convert 7% to decimal = 0.07

 

S = 42,000(1+0.07)

S = 42,000 * 1.07 

S = $44,940