Question

A college instructor earning an annual salary of $45,500 is given a 2% cost of living raise. What is the instructor's new annual salary?

A) $45,590

B) $46,410

C) $46,610

D) $46,500

Answer 1

The college instructor's new annual salary after a 2% raise on a $45,500 salary is $46,410.

Step-by-step explanation:

To calculate the new annual salary of a college instructor after a 2% cost of living raise, we first determine the amount of the raise by multiplying the current salary by the percentage increase. A 2% increase of $45,500 is calculated as follows: $45,500 × 0.02 = $910. The new annual salary is found by adding this raise to the original salary: $45,500 + $910 = $46,410. Therefore, the correct answer is B) $46,410.