How much money are you now making?

Question

you are paid $17.50 per hour. since you just had great review your boss gave you an 8% raise. one later the company falls on hard times and everyone is forced to take an 8%. how much money are you now making?

Answer 1

Lyn, if I add 8% of an amount to the amount, I now have 108% of the original amount, right?

 

Let's look. 8% of 200 is 16. Since 200 is 100% of 200, and I am adding 8% of 200, 216 is 108% of 200. 200(1.08) = 216

 

Now, if I take 8% away from an amount, I'm left with 92% of the amount. Like the problem, if I take 92% of 216, I'm left with 198.72. 216(.92) = 198.72

 

If I add 8% and take away 8%, shouldn't I be back to where I started? No, because 8% of the larger amount is more than 8% of the original amount!

 

Back to the problem. We want 92% of 108% of 17.50

 

.92(1.08)(17.5) = $17.39

 

Hope this helps!

 

 

Answer 2

17.39

 

First take original $17.50, multiply by .08 which is $1.4. $1.40 is the amount of raise .  Add it to 17.50 to get new pay = 18.90

 

Now take .08 times $18.90 to get the amount of decrease =$ 1.51. Subtract $1.51 from 18.90 to get new pay=$17.30 is the new rate