Question

You earn $1,320 a week. The company needs to make cutbacks so your pay is reduced by 10%. Later you get a 10% cost−of−living raise. What is your current weekly pay?

Answer 1

First, your pay is reduced by 10%, which means you make 90% of the original amount:

1320 x 0.90 = 1188

When your pay is reduced 10% you now make $1,188 a week.

Now you get a 10% raise,

multiply the amount you make by 1.1 to get the new weekly pay:

1188 x 1.1 = 1306.80

Your current weekly pay is: $1,306.80