Questions: Ella is promoted to salary level 3, receives a 2% cost-of-living increase and a 5% merit bonus. What is Ella's new salary? Level 1 2 3 Salary 55,000 60,000 64,000 [?] Round to the nearest dollar.

Ella is promoted to salary level 3, receives a 2% cost-of-living increase and a 5% merit bonus. What is Ella's new salary?

Level 1 2 3
Salary 55,000 60,000 64,000

[?]

Round to the nearest dollar.

Transcript text: Ella is promoted to salary level 3, receives a 2\% cost-of-living increase and a 5\% merit bonus. What is Ella's new salary? \begin{tabular}{|l|r|r|r|} \hline Level & $\mathbf{1}$ & $\mathbf{2}$ & $\mathbf{3}$ \\ \hline Salary & $\$ 55,000$ & $\$ 60,000$ & $\$ 64,000$ \\ \hline \end{tabular} $\$[?]$ Round to the nearest dollar.

Solution

Solution Steps

Step 1: Identify the Initial Salary

The initial salary for the promotion level 3 is $64000.

Step 2: Apply the Cost-of-Living Increase

The cost-of-living increase is calculated as $64000 * (2% / 100) = $1280. Thus, the new salary after applying the cost-of-living increase is $64000 + $1280 = $65280.

Step 3: Apply the Merit Bonus

The merit bonus is calculated as $65280 * (5% / 100) = $3264. Thus, the final salary after applying the merit bonus is $65280 + $3264 = $68544.

Step 4: Round the Result

The final salary, rounded to the nearest dollar as per standard mathematical rounding rules, is $68544.