Question

Warren was making $100,000 per year. His boss said that he was going to cut his salary 25%, but that Warren shouldn't worry because he would be given a 25% raise the next day. How much will Warren's salary be after the 25% cut and 25% raise?

Answer 1

Warren's salary will be $93,750 after the 25% cut and 25% raise.

Step-by-step explanation:

Warren's salary will be reduced by 25% initially. This means his salary will become $100,000 - (0.25 * $100,000) = $75,000.

Then, Warren's salary will be increased by 25%. This means his salary will become $75,000 + (0.25 * $75,000) = $93,750.

So, Warren's salary will be $93,750 after the 25% cut and 25% raise.