Question

Jeremiah and Sara's family income increased from $60,000 to $63,000 in the past year. Inflation was 2 percent over the same time period.Which of the following is true regarding Jeremiah and Sara's income?

5% 10% 15% 20%

Answer 1

Nominal increase in salary will be 5 %

So option (A) will be correct answer

Step-by-step explanation:

We have given initially the income of Jeremiah and Sara's family family is $60000

And then in past year it is increased to $63000

So nominal increase in salary = $63000 - $60000 = $3000

In percentage nominal increase in salary
`=(3000)/(60000)=0.05` = 5 %

So nominal increase in salary will be 5 %

So option (A) will be correct answer