Question

mike is promoted to salary level 2, receives a 3% cost-of-living increase and a 10% merit bonus. what is mikes new salary?
level | 1 | 2 | 3
salary | $54,000 | $60,000 | $68,000
$?
round to the nearest dollar.

Explanation:

Step1: Identify Mike's base salary at level 2

From the table, the salary for level 2 is $60,000.

Step2: Calculate the cost - of - living increase

The cost - of - living increase is 3% of $60,000. The formula for the amount of increase is $60000\times0.03$.
$60000\times0.03 = 1800$
The salary after cost - of - living increase is $60000 + 1800=61800$.

Step3: Calculate the merit bonus on the new salary

The merit bonus is 10% of the salary after cost - of - living increase. The formula for the merit bonus amount is $61800\times0.1$.
$61800\times0.1 = 6180$

Step4: Calculate the final salary

The final salary is the salary after cost - of - living increase plus the merit bonus. So, $61800+6180 = 67980$.

Answer:

$67980$