Posted by **Aleah** on Wednesday, July 15, 2009 at 6:32pm.

Allen was earning $30,000 working for a small business. The business had a bad year, and Allen was asked to take a 10% cut in pay with the assurance that he would receive a 10% increase in salary the following year. If Allen agreed, what would be his salary in 2 years?

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**Ms. Sue**, Wednesday, July 15, 2009 at 6:49pm
OK. Aleah and all of your aliases -- it's your turn now. How do you think you should solve this problem?

Please post what you think -- and we'll be glad to check it.

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**Aleah**, Wednesday, July 15, 2009 at 6:56pm
30000*10%= 3000

30000-3000=27000

30000+10%=33000

30000+20%=36000

In two years, his salary will be $36,000.

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**Ms. Sue**, Wednesday, July 15, 2009 at 7:00pm
That's a good try.

However, you need to use his reduced salary as a base.

27,000 * 1.1 = 29,700 the first year

29,700 * 1.1 = 32,670

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**Aleah**, Wednesday, July 15, 2009 at 7:07pm
Thanks!

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**Ms. Sue**, Wednesday, July 15, 2009 at 7:22pm
You're welcome.

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