Question

Rick Palmer received a $2,500 raise this year. This increased his salary as an associate TV producer from $47,500 to $50,000. What percentage increase in nominal income did Rick receive?
a. 2.5 percent
b. 5.3 percent
c. 5.6 percent
d. 7.8 percen

Answer 1

Answer:

Nominal increase in salary will be 5.3%

So option (b) will be correct answer

Explanation:

We have given initially the salary of Rick Palmer is $47500

And then it is increased to $50000

So nominal increase in salary = $50000 - $47500 = $2500

We have to find the percentage nominal increase in salary

So percentage nominal increase $=\frac{nominal\ incriment }{initial\ salary}=\frac{2500}{47000}=0.0531$ = 5.3 %

So option (B) will be correct answer