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Joshua Vermier of Sacramento, California, received a raise after his first year on the job to $45,200 from his initial salary of $42,000. What was Joshua’s raise stated as a percentage? Inflation averaged 2.8 percent for the year. Round your answer to one decimal place.

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Answer:

2.73%

Explanation:

First at all, we need to calculate the raise of the salary due only to inflation:

42.500 x ( 1 + 2.8%) = 43.998,4 USD.

The real increase is the difference between the previous calculation and the 45.200 dollars. Then, we need to know which percentage is necessary to increase the salary up to 42.500.

43.998,4 * ( 1 + x%) = 45.200

43.998,4 + 43.998,4 * x% = 45.200

43.998,4 * x% = 1201.6

x% = 1201.6 / 43.998,4

x% = 2.73

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