Alana lost $560 in purchasing power last year due to inflation. If the inflation rate was 2.75%, find the...

Question

4. Alana lost $560 in purchasing power last year due to inflation. If the inflation rate was 2.75%, find the percentage raise she received on her $60,000 salary. Round your answer to the nearest tenth.
A. 1.6%
B. 1.8%
C. 1.4%
D. 2.1%

SnapAndSolve AI · Accepted Answer

To find the percentage raise, we first calculate the expected loss in purchasing power due to inflation:
Expected Loss = $60,000 * 2.75% = $1,650

Since Alana only lost $560, the raise must have compensated for the difference:
Compensation = $1,650 - $560 = $1,090

Now, calculate the percentage raise:
Percentage Raise = ($1,090 / $60,000) * 100 = 1.8%

The correct answer is B. 1.8%

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Alana lost $560 in purchasing power last year due to inflation. If the inflation rate was 2.75%, find the...

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