Question

question 4 of 10: your union goes on strike. you lose $15,000 in wages from a $65,000 per year job as a result of not working during the strike. the strike concluded with a new contract providing a 5% wage increase for the next five years. this resulted in $18,000 in additional income over five years. what was the net gain or loss for the employee?
a) $15,000 loss
b) $3,250 loss
c) $3,000 gain
d) $18,000 gain

Explanation:

Step1: Identify losses

The loss in wages due to strike is $15000$.

Step2: Identify gains

The additional income over five - year period due to wage increase is $18000$.

Step3: Calculate net gain or loss

Net = Gains - Losses. So, Net=$18000 - 15000$.
$18000-15000 = 3000$

Answer:

C. $3000$ gain