Answer:
The correct answer is C. 8.15%.
Step-by-step explanation:
Given that Natasha is a bank teller, and she received a 5% raise last year and a subsequent merit raise of 3% this year, to determine what is the accumulative or compound effect of these two raises as a percentage, the following calculation must be performed, assuming, as an example, that her starting salary was $ 2,000:
(2,000 x 1.05) x 1.03 = X
2,100 x 1.03 = X
2,163 = X
2,000 = 100
2,163 = X
2,163 x 100 / 2,000 = X
216,300 / 2,000 = X
108.15 = X
108.15 - 100 = 8.15
Thus, the compound effect of both salary increases is a salary increase of 8.15%.
