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Alice earns £450 in wages per month. She pays £200 in 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.

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Explanation:

Wages

£450

450 x 1.02 = 459

Rent

£200

200 x 1.05 = 210

wages increases by £9

rent increases by £10

No the increase in her wages will not fully pay for the increase in the rent

User Miklesw
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