Question

In his first year at a publishing company Stephen received a salary of $17,000 and was given no bonus. At the start of his second year with the company, he was given a salary increase of 8%. At the end of the year he received a bonus of $1200. What was Stephen's total compensation in the second year?

Answer 1

Stephen's total compensation in the second year = $19,560

Explanation:

Stephen's salary in his first year = $17000

increase in the salary in second year = 8%

8% of 17000 = 17000 * 8/100 = $1360

Stephen's increased salary in his second year = $17000 + $1360

= $18360

bonus received at the end of the year = $1200

Stephen's total compensation in the second year = $18360 + $1200

= $19560