Question

james is promoted to salary level 3, receives a 3% cost - of - living increase and a 10% merit bonus. what is jamess new salary?
level 1 2 3
salary $50,000 $54,000 $60,000
$?
round to the nearest dollar.

Explanation:

Step1: Identify the base salary

The base salary for level 3 is $60,000.

Step2: Calculate the cost - of - living increase

The cost - of - living increase is 3% of $60,000. We calculate 3% of 60000 as $60000\times0.03 = 1800$. So the salary after the cost - of - living increase is $60000 + 1800=61800$.

Step3: Calculate the merit bonus

The merit bonus is 10% of the salary after the cost - of - living increase. 10% of 61800 is $61800\times0.1 = 6180$.

Step4: Calculate the new salary

The new salary is the salary after the cost - of - living increase plus the merit bonus. So it is $61800+6180 = 67980$.

Answer:

$67980$