Last year Joan's salary was $18,000. If she receives a $900 raise for this year, what percent of last year's salary is her raise?

Rationale

Choice B) 5%

To calculate the percentage increase in Joan's salary, divide the raise amount ($900) by her previous year's salary ($18,000), then multiply by 100 to express it as a percentage. In this case, ($900 / $18,000) * 100 = 5%, making B the correct choice.

A (2%) YOUR ANSWER

This percentage represents the incorrect calculation of the raise. Dividing $900 by $18,000 yields 0.05, which when converted to a percentage equals 5%, not 2%.

C (20%) YOUR ANSWER

This percentage overestimates the raise amount. If Joan's raise were 20% of her previous salary, it would amount to $3,600 ($18,000 * 0.20), which is four times higher than the actual raise of $900.

D (50%) YOUR ANSWER

A 50% raise would mean Joan's salary increased by half of the previous year's amount, resulting in a raise of $9,000 ($18,000 * 0.50). This value greatly exceeds the $900 raise she actually received.

Conclusion

By correctly applying the percentage increase formula—dividing the raise amount by the initial salary and converting to a percentage—Joan's $900 raise for this year corresponds to 5% of her $18,000 salary from the previous year. This calculation accurately reflects the proportional increase in her earnings between the two consecutive years.

Last year Joan's salary was $18,000. If she receives a $900 raise for this year, what percent of last year's salary is her raise?

Choice B) 5%

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