Question

Alice earns £450 in wages per month.

She pays £200 rent per month.
Next month.
her wages will increase by 2%
her rent will increase by 5%
She says
"The increase in my wages will pay for the increase in my rent."
Is she correct?
You must show your working.

Answer 1

false

Explanation:

Since in the question it is mentioned that the wages would be increased by 2% and rent would increase by 5%

So, the increased value of both is

= $450 × 1.02

= $459

And,

= $200 × 1.05

= $210

As the wages are increased to $9 and the rent is increased to $10 since the amount is not equivalent to each other so the given statement is false