Alba Tross had an annual salary of $50,000. She received a 5 percent pay cut one year followed by a 5 percent pay raise the next.

a. What is Alba’s final salary?
Would it be 50,000 - 5% + 5% =49.875
b. What is Alba’s final salary less than her original salary? Not sure at all about this one!

2 answers

a. correct
b. the final salary is less because after the 5% cut ($2500), a 5% raise is less than $2500, since the base salary amount is now less.
Use linear calculator