QuestionYou earn \$6,875. After a 6.5% pay cut, how much will your salary decrease? What will your new salary be? After a raise, will you return to your original salary?

Studdy Solution
Calculate the difference.
$$Difference = \$6,875 - \$6,845.95 = \$29.05$$The new salary is $29.05 less than the original salary. Therefore, the employer's plan to reduce the salary by6.5% and then increase it by6.5% does not make the new monthly salary equal to the original monthly salary again.