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Rain earns $500 biweekly. His new contract includes a salary increase of 10%. What is his new biweekly salary?

A) $500
B) $550
C) $600
D) $650

1 Answer

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Final answer:

Rain's new biweekly salary after a 10% raise on the original amount of $500 is $550.

Step-by-step explanation:

To compute Rain's new biweekly salary following a 10% increase, a straightforward calculation is employed. Rain's original biweekly salary is $500. The first step involves determining the increase amount by multiplying the original salary by the percentage increase, expressed as a decimal. In this case, a 10% increase is represented as 0.10 in decimal form:

\[ $500 \times 0.10 = $50 \]

This calculation yields a $50 increase. To find Rain's new biweekly salary, this increase is added to the original salary:

\[ $500 + $50 = $550 \]

Hence, after a 10% salary increase, Rain's new biweekly salary is $550.

Understanding how to calculate percentage increases is essential in various contexts, such as negotiating salary adjustments, budgeting, or determining the impact of changes in income. In Rain's scenario, the 10% increase results in an additional $50 per biweekly pay period, leading to a revised total of $550. This calculation method is a fundamental tool for individuals managing their finances or organizations making adjustments to compensation structures.

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