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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?

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Solution

Sure, here's how to calculate the bi-weekly pay after two years of 5% increases:

  1. Start with the initial bi-weekly pay of $500.00.

  2. Calculate the first year's increase: 500.005/100=500.00 * 5/100 = 25.00. Add this to the initial pay: 500.00+500.00 + 25.00 = $525.00. This is the bi-weekly pay after the first year.

  3. Calculate the second year's increase: 525.005/100=525.00 * 5/100 = 26.25. Add this to the first year's pay: 525.00+525.00 + 26.25 = $551.25.

So, the employee should be paid $551.25 bi-weekly after their second salary increase.

This problem has been solved

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