ella is promoted to salary level 2, receives a 2% cost - of - living increase and a 5% merit bonus. what is…
ella is promoted to salary level 2, receives a 2% cost - of - living increase and a 5% merit bonus. what is ellas new salary?\nlevel 1 2 3\nsalary $55,000 $60,000 $64,000\n$?\nround to the nearest dollar.
Answer
Explanation:
Step1: Calculate cost - of - living increase
The base salary at level 2 is $60000$. The cost - of - living increase is 2% of $60000$. So the amount of cost - of - living increase is $60000\times0.02 = 1200$.
Step2: Calculate merit bonus
The merit bonus is 5% of $60000$. So the amount of merit bonus is $60000\times0.05=3000$.
Step3: Calculate new salary
The new salary is the sum of the base salary, cost - of - living increase and merit bonus. So the new salary is $60000 + 1200+3000=64200$.
Answer:
$64200$