Allen was earning $30,000 working for a small business. The business had a bad year, and Allen eas 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 his salary be in 2 years?
What is
30000(.9)(1.1) ?
To find out Allen's salary in 2 years, let's first calculate his salary after taking a 10% pay cut.
Step 1: Calculate the amount of the pay cut:
10% of $30,000 = 0.10 * $30,000 = $3,000
Step 2: Subtract the pay cut from his original salary:
$30,000 - $3,000 = $27,000
Now that we know Allen's salary after the pay cut, let's calculate his salary after receiving a 10% increase the following year.
Step 3: Calculate the amount of the 10% increase:
10% of $27,000 = 0.10 * $27,000 = $2,700
Step 4: Add the increase to his salary after the pay cut:
$27,000 + $2,700 = $29,700
Therefore, Allen's salary in 2 years would be $29,700.