Question

You make $25000 a year, and you get a 10% raise. Your new salary is $____ The next year you get a 10% cut. Your new salary is $_____. That is ____% less than your initial salary.

Answer 1

Firstly, we have to find out what 10% of $25000 is. To do this, multiply $25000 by 0.1 (10% in decimal form):
`\$25000 * 0.1=\$2500` . $2500 is the 10% raise.

Next, to find your first new salary, add $25000 and $2500 together:
`\$25000+\$2500=\$27500` . $27500 is your new salary after the 10% raise.

Next, we need to find 10% of $27500. It's a similar process as to finding 10% of $25000.
`\$27500 * 0.1=\$2750` . $2750 is your 10% cut.

Next, since this is a cut, subtract $2750 from $27500.
`\$27500-\$2750=\$24750` . $24750 is your new salary after the 10% cut.

Next, to find the percentage change, firstly divide $24750 by $25000.
`(\$24750)/(\$25000)=0.99\ \textsf{or}\ 99\%` . Now this shows that your current salary is 99% of what you used to make. It is not how much less you make. To find how much less it is, subtract 99% from 100%:
`100\%-99\%=1\%` . Your current salary is 1% less than what you used to make.