Question

Sydney currently earns 11.50 an hour working part time. What is the minimum increase per hour she needs to at least match the average annual rate of inflation at three percent

Answer 1

The salary of Sydney to meet the loss due to inflation should be 11.85 per hour

Explanation:

The inflation rate is 3%

This means that the alary amount will reduce by 3%.

3% of Sydney's hourly salary is

`(3)/(100) *11.50` = 0.345

Hence, the new salary must increase by 0.345 dollar per hour

The salary of Sydney to meet the loss due to inflation should be 11.50 + 0.345 = 11.845 or 11.85