4 2points total a 1 point You earn 50000 per year Your boss

4. (2points total) a) (1 point) You earn $50,000 per year. Your boss is impressed with your work performance and offers you a ten percent raise. What is your new annual income? b) (1point) A week later your boss receives news of the loss of a major client’s business and informs you that your income will be cut by ten percent. What is your new income?

Solution

a)  You earn $50,000 per year. Your boss is impressed with your work performance and offers you a ten percent raise. New annual income in this case:-

= 50000 + 10 % of 50000

= 50000 + 5000

= $ 55000

b) A week later your boss receives news of the loss of a major client’s business and informs you that your income will be cut by ten percent. New income in this case will be:-

= 50000 - 10% of 50000

= 50000 - 5000

= $ 45000