joe is promoted to salary level 3, receives a 2% cost - of - living increase and a 10% merit bonus. what is…
joe is promoted to salary level 3, receives a 2% cost - of - living increase and a 10% merit bonus. what is joes new salary?\nlevel 1 2 3\nsalary $48,000 $53,000 $72,000\nround to the nearest dollar.
Answer
Explanation:
Step1: Calculate cost - of - living increase
The base salary at level 3 is $72000$. The cost - of - living increase is 2% of $72000$. So the amount of cost - of - living increase is $72000\times0.02 = 1440$.
Step2: Calculate merit bonus
The merit bonus is 10% of $72000$. So the amount of merit bonus is $72000\times0.1=7200$.
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 $72000 + 1440+7200=80640$.
Answer:
$80640$