Respuesta :
Answer:
4.09%, $44,552.53 and 1.26%
Explanation:
Given the following from the question:
Initial salary = IS = $44,000
New salary = NS = $45,800
Inflation = 2.8% = 0.028
To calculate Joshua's raise as a percentage, we employ the percentage change formula as follows:
Joshua’s raise as a percentage = [(NS - IS) ÷ IS] × 100
= [($45,800 - $44,000) ÷ $44,000] × 100
= [($1,800 ÷ $44,000] × 100
= 0.0409 × 100
= 4.09%
To calculate Joshua’s Real Income after the Raise, we employ the inflation adjusted income formula as follows:
Joshua’s Real Income after the Raise = RNS = NS ÷ (1 + Inflation Rate)
= $45,800 ÷ (1 + 0.028)
= $45,800 ÷ 1.028
= $44,552.53
To calculate Joshua’s real raise as a percentage, we also employ the percentage change formula. The only difference is that we will now use the real income (RNS) of $44,552.53 to replace the nominal income (NS) of $45,800 as follows:
Joshua’s real raise as a percentage = [(RNS - IS) ÷ IS] × 100
= [($44,552.53 - $44,000) ÷ $44,000] × 100
= [($552.53 ÷ $44,000] × 100
= 0.0126 × 100
= 1.26%
