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A company increased the salary of its employees by 12%. If an employee's current

Practice Questions

Q1
A company increased the salary of its employees by 12%. If an employee's current salary is $1,500, what will be the new salary?
  1. $1,620
  2. $1,680
  3. $1,700
  4. $1,800

Questions & Step-by-Step Solutions

A company increased the salary of its employees by 12%. If an employee's current salary is $1,500, what will be the new salary?
Correct Answer: $1,680
  • Step 1: Identify the current salary of the employee, which is $1,500.
  • Step 2: Determine the percentage increase, which is 12%.
  • Step 3: Convert the percentage increase to a decimal by dividing by 100. So, 12% becomes 0.12.
  • Step 4: Calculate the amount of the increase by multiplying the current salary by the decimal. So, $1,500 * 0.12 = $180.
  • Step 5: Add the increase to the current salary to find the new salary. So, $1,500 + $180 = $1,680.
  • Percentage Increase – Understanding how to calculate a percentage increase on a given amount.
  • Basic Arithmetic – Applying basic arithmetic operations to find the new salary after the increase.
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