An employee was hired at a bi-weekly rate of $500.00. Each year, for two years, they received a 5% increase over their present pay. How much should the employee be paid, bi-weekly, after their second salary increase?
Question
An employee was hired at a bi-weekly rate of $500.00. Each year, for two years, they received a 5% increase over their present pay. How much should the employee be paid, bi-weekly, after their second salary increase?
Solution
Sure, here's how to calculate the bi-weekly pay after two years of 5% increases:
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Start with the initial bi-weekly pay of $500.00.
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Calculate the first year's increase: 25.00. Add this to the initial pay: 25.00 = $525.00. This is the bi-weekly pay after the first year.
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Calculate the second year's increase: 26.25. Add this to the first year's pay: 26.25 = $551.25.
So, the employee should be paid $551.25 bi-weekly after their second salary increase.
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