Question

PLEASE HELP ASAP OFFERING 10 POINTS

After Frances George's semi-annual performance review, she received a merit increase of 4.75% and a COLA of 3.25%. She now earns $20.01 an hour. What was her hourly wage, to the nearest cent, before the merit and COLA increases? Express your answer in dollars and cents.

Use the following formula to help you

New Salary= X + Cost of living adjustment + merit increase

Answer 1

New salary = $20.01/hr = x + 0.0475x + 0.0325x, where x represents the original hourly wage.

20.01 = x(1 + 0.0475 + 0.0325), or

20.01 = x(1.08). Therefore, x = 20.01 / 1.08 = 18.53.

Her initial hourly wage was $18.53.

Answer 2

Call the old salary x.

The merit increase is 4.75% of x and the COLA is 3.25% of x. The new salary is the sum of the old salary and the two increases:

20.01 = x + .0475 x + .0325 x

We factor out x and add up the coefficients:

20.01 = 1.08 x

Now we solve for x by dividing both sides by 1.08

x = 20.01/1.08 = $18.53

Answer: $18.53 per hour

Check: 18.53(1+.0475+.0325)=20.0124 good