A union contract called for a 7.5% increase in the hourly rate of pay. If the increase is $0.39, what was the old hourly wage and what is the new hourly wage?

0.075x = 0.39

x = $5.20

.075*original = 0.39

so
original = 5.2 (must be an old text book)

new = 5.2*1.075 = 5.2+.39 I hope :)

Thank you both Ms. Sue and Damon. I just worked out the problem and got the same answer.

To solve this problem, we'll use the following steps:

Step 1: Set up an algebraic equation.
Let x be the old hourly wage.
The new hourly wage can be calculated by adding the increase to the old wage, so the equation is:
x + 0.075x = x + $0.39

Step 2: Simplify the equation.
Combine like terms on the left side of the equation:
1.075x = x + $0.39

Step 3: Solve for x.
Subtract x from both sides of the equation:
0.075x = $0.39

Next, divide both sides of the equation by 0.075 to isolate x:
x = $0.39 / 0.075

Step 4: Evaluate x to find the old hourly wage.
Now, we can use a calculator to divide $0.39 by 0.075:
x ≈ $5.20

Therefore, the old hourly wage was approximately $5.20.

Step 5: Calculate the new hourly wage.
To find the new hourly wage, we add the increase to the old wage:
new hourly wage = $5.20 + $0.39

Using a calculator, we get:
new hourly wage ≈ $5.59

So, the new hourly wage is approximately $5.59.