SOLUTION: You receive a 7 percent cut in pay one year, followed by a 10 percent increase the following year? What is the overall percent increase or decrease over the two years? I tried to a

Question 918526: You receive a 7 percent cut in pay one year, followed by a 10 percent increase the following year? What is the overall percent increase or decrease over the two years? I tried to add negative 7 by 10 percent, which got me the answer of 3 percent. Am I right, or did I miss a step?
Answer by josmiceli(19441) (Show Source): You can put this solution on YOUR website!
A convenient annual pay is $100 ( or any number )
7% cut would leave you with:

$93
-----------
The next year, a 10% increase leaves you with:

---------------------
The amount of increase is:

The % increase is:
or 2.3%

RELATED QUESTIONS
The height of a 12-year-old boy increased by 17% last year and by 12% this year. What is... (answered by ankor@dixie-net.com)

John's pay was cut by 15 % in a certain year. The following year he received a pay... (answered by robertb)

If you had 10 records last year and you have 14 what is the percent increase (answered by josmiceli)

What is the future value of a 5 year annuity due that promises to pay you $300 each year? (answered by stanbon)

Jim works for $15.50 per hour for a health care facility. He is supposed to get a 75 cent (answered by edjones)

jim works for $15.50 per hr for a health care facility. he is suppose to get a 75 cent... (answered by rfer)

Jim works for $15.50 per hour for a health care facility. He is supposed to get a 75... (answered by rfer)

A company had 100 employees one year ago. Overall, the number of employees is growing by (answered by addingup)

Suppose that you have $10,000 in a rather risky investment recommended by your financial... (answered by josmiceli,MathTherapy)