Question

Bob is hired by Company A and is given an annual salary of $35 000 with a 10% raise

after 1 year. Sam is hired by Company B and is paid $3842.42 per month with a 5% raise
after 1 year. Determine the difference of salary after 1 year.

Answer 1

Explanation:

Bob's salary : $35000 per year plus 10% after one year

100% = 35000

1% = 100%/100 = 35000/100 = $350

10% = 10×1% = 10×350 = $3500

so in total, his salary will be $35000+$3500 = $38500 after one year.

Sam's salary : $3842.42 per month plus 5% after one year.

100% = $3842.42 per month. but to make it comparable to Bob's salary, we need to calculate the annual salary.

so, 100% 12×3842.42 = $46109.04

1% = 100%/100 = 46109.04/100 = $461.09

5% = 5×1% = 5×461.09 = $2305.45

so, in total, his salary will be $46109.04+$2305.45 = $