Question

Chloe is given a 10% pay rise.

The next year Chloe is given another 10% pay rise.
Her manager says that Chloe’s pay has increased by 20% overall. Explain why Chloe’s manager is wrong

Proper answer

Answer 1

Let's use a starting pay of 2,000.

2,000 × 10%= 200

2,000 + 200= 2,200

2,200 × 10%= 220

2,200 +220 =2,420

Now lets take 2,000 ×20%= 400

2,000+400= 2,400