35
QuizMultiple Choice

The Economy and You

Question 35 • T1 - 4 RMA-TX-Financial Math-B

Say that the economy is in an expansion, causing wages to increase by six percent. If you previously received a monthly salary of $1,375.00, what will your new monthly salary be? Round all dollar values to the nearest cent.

Answer
A
$2,365.00
B
$1,604.17
C
$1,462.77
D
$1,457.50

Explanation

A 6% increase means adding 6% of the original salary to the original amount. Six percent of $1,375.00 is $1,375.00 × 0.06 = $82.50, so the new salary is $1,375.00 + $82.50 = $1,457.50. The correct choice is $1,457.50.

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