This document discusses pay raises and how to calculate new salaries after a percentage increase. It provides two examples: one where Joan received an 8% raise on her $1000 monthly salary, increasing it to $1080, and another where Steve's $45,000 annual salary was increased 15% to $51,750 after his raise. Percentage raises are commonly used to increase employee salaries over time based on a set percentage of their current pay.

1. Pay Raise

2. Salary is a set amount of money
you get paid for a set period of
time.
i.e. $500 per week, $50000 per
year.

3. People paid by salary usually get
raises in pay based on a percent.
They might get an increase of 1%
or 100% or anything in between

4. Example
Joan makes $1000 per month. She is to
receive a 8% increase in pay. What is her
new salary?
Solution
8% = .08
raise in dollars
1000 * .08 = 80
so her new salary is 1000+80 = $1080 per
month

5. Example 2
Steve is paid $45000 per year. He did an
awesome job this year and is receiving a
15% raise next year. What will his salary be
next year?
Solution
15% = .15
45000 * .15 = 6750
45000 + 6750 = $51750 new salary

6. Do some yourself
Assignment 7
Questions 1-7