I really don't want to cheat, I want a full explanation of how you got the answer so that I can understand. The course material

Question

2 months ago

10

I really don't want to cheat, I want a full explanation of how you got the answer so that I can understand. The course material

didn't go over things:
1) Compare a pay increase to the inflation rate. Assume that the inflation rate for the past year was 4 percent. You are worried that your pay is not keeping pace with your cost of living. Your average net pay this year is $2,225 per month. It was $2,176 last year. Based on this information, your average net pay per month increase is _______

2) Compare a pay increase to the inflation rate. Assume that the inflation rate for the past year was 4 percent. You are worried that your pay is not keeping pace with your cost of living. Your average net pay this year is $2,225 per month. It was $2,176 last year. Based on this information, your average net pay per month increased ______ %. (Round your answer to one decimal place.)

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1 answer:

marusya05 [3.7K] · Answer 1 · 2026-03-17T11:28:29+03:00

Response:

1. The monthly average net pay rise is $49.

2. The average monthly pay rise is 2.3%.

This query requires us to compare the pay increase against the inflation rate.

To perform this comparison, we first ascertain the average monthly pay increase in dollar terms.

This is computed by:

$Monthly pay increase in dollars = This year's monthly pay - Last year's monthly pay$

$Monthly pay increase in dollars = 2225 - 2176 = 49$

Next, we identify the rate at which the monthly average has increased.

The following formula is used for this calculation:

$Percentage increase in net pay = \frac{Increase in average monthly pay}{Last year's average monthly pay} * 100$

$Percentage increase in net pay per month = \frac{49}{2176} * 100$

The percentage increase in net pay each month is 2.3%.

We then analyze the monthly pay rise in relation to the inflation rate.

If the monthly pay increase meets or exceeds the inflation rate, it suggests that pay is keeping pace with living costs. Conversely, if the increase lags behind the inflation rate, it suggests that pay is not keeping up with living expenses.