Reggie’s annual salary increase from $42,000 to $46,200 this year and his colleague Gerald’s annual salary increased from $40,590 to $43,950. Who received a higher rate of increase this year?
To compare the rates of increase, we need to calculate the percentage increases for both Reggie and Gerald.
Reggie's increase in salary = $46,200 - $42,000 = $4,200
Percentage increase for Reggie = (increase in salary/original salary) * 100
= ($4,200/$42,000) * 100
= 10%
Gerald's increase in salary = $43,950 - $40,590 = $3,360
Percentage increase for Gerald = (increase in salary/original salary) * 100
= ($3,360/$40,590) * 100
= 8.27%
Therefore, Reggie received a higher rate of increase this year with 10% compared to Gerald's 8.27%.