Calculating Salary Increases and Raises

The video tutorial explains how to calculate salary or wage increases based on a percentage raise. It provides a formula where the increase amount is the old salary or hourly wage multiplied by the percentage of the raise. The tutorial includes examples for both salaried and hourly wage employees, demonstrating how to convert percentage raises to decimals and calculate the new salary or wage. The video concludes with additional resources for further learning.

What is the first step in calculating a salary increase based on a percentage raise?

• Add the percentage raise to the old salary.

• Multiply the old salary by the percentage raise.

• Subtract the old salary from the new salary.

• Convert the percentage raise to a decimal.

In the formula for calculating a raise, what does the 'old salary' refer to?

• The salary after the raise.

• The highest salary received.

• The salary before the raise.

• The average salary over the year.

How do you convert a percentage to a decimal for calculation purposes?

• Add two zeros to the percentage.

• Divide the percentage by 100.

• Subtract 10 from the percentage.

• Multiply the percentage by 10.

If a salaried employee earns $27,450 and receives a 2.5% raise, what is the increase amount?

• $700.00

• $686.25

• $650.00

• $750.00

What is the new salary of an employee who earns $27,450 and receives a 2.5% raise?

• $28,500.00

• $28,000.00

• $28,136.25

• $27,500.00

For an hourly wage employee earning $16 per hour, what is the increase amount with a 4.5% raise?

• $0.90

• $1.00

• $0.72

• $0.80

What is the new hourly wage for an employee earning $16 per hour after a 4.5% raise?

• $16.72

• $17.00

• $16.90

• $16.50

What is the purpose of converting a percentage to a decimal in raise calculations?

• To simplify the addition process.

• To make the percentage larger.

• To accurately multiply it with the salary.

• To avoid using a calculator.

What is the first step in calculating a raise for an hourly wage employee?

• Add the raise to the old wage.

• Multiply the old wage by the raise.

• Subtract the raise from the old wage.

• Convert the percentage raise to a decimal.

Why is it important to understand how to calculate salary increases?

• To negotiate better job offers.

• To understand financial growth.

• To plan for future expenses.

• All of the above.