Nick received a $7000.00 raise. If his previous salary was 55000.00, what was the percent of increase in salary?

Question

Nick received a $7000.00 raise. If his previous salary was 55000.00, what was the percent of increase in salary?

I put the answer as (A) 13%. The other possible answers are: (B) 1%, (C) 8%, (D) 14%. If my answer is not correct, Could please tell me what I'm doing wrong in figuring out the problem?

Thanks,
Carol

Answer 1

You're right.

Answer 2

To determine the percentage increase in salary, you need to calculate the difference between the new salary (original salary + raise) and the original salary, and then express that difference as a percentage of the original salary.

In this case, Nick received a $7000.00 raise, making his new salary $55000.00 + $7000.00 = $62000.00.

To find the percentage increase, you need to calculate the difference between the new salary ($62000.00) and the original salary ($55000.00):

$62000.00 - $55000.00 = $7000.00

Next, divide the difference by the original salary and multiply by 100 to express it as a percentage:

($7000.00 / $55000.00) * 100 = 12.73%

So the closest answer choice is (D) 14%. However, if you're required to select the closest answer, the correct choice would be (A) 13% since it is the closest rounded estimate to 12.73%.