Real Income. Joshua Vermier of Sacramento, California, received a raise after his first year on the job to $45,800 from his initial salary of $44,000. What was Joshua’s raise stated as a percentage? If inflation averaged 2.8 percent for the year, what was his real income after the raise? What was his real raise stated as a percentage?

Question

Want to see more full solutions like this?

Answer 1

Textbook Question

Chapter 1, Problem 1DTM

Real Income. Joshua Vermier of Sacramento, California, received a raise after his first year on the job to $45,800 from his initial salary of $44,000. What was Joshua’s raise stated as a percentage? If inflation averaged 2.8 percent for the year, what was his real income after the raise? What was his real raise stated as a percentage?

Expert Solution & Answer

Summary Introduction

To Calculate: Percentage of rise and his real income if inflation is 2.8%.

Concept Introduction: Real income is an income in which amount of inflation is already adjusted. It is calculated by dividing the nominal income from the change in price level. It measures the amount of goods and services purchased out of income.

Explanation of Solution

Given Information: The Salary of employee is $ 44,000 at starting of year one and $ 45,800 at the end of year one.

Percentage raise in income= Current income−Previous incomePrevious income×100

= 45800−4400044000×100

= 4.09%

If inflation is 2.8% then real is income is as follows:

Real income= Current income×100100+inflation rate

= 45800×100100+2.8

= $44,552.53

Real raise in income = Real income−Previous incomePrevious income×100

= 44553−4400044000×100

= 1.26%

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

Joshua Vermier of Sacramento, California, received a ralse after his first year on the job to $44,200 from his initial salary of $40.000. what was Joshua's ralse stated as a percentage? Inflation averaged 2.4 percant for the year. Round your answer to one dedmal place. What was his real income after the ralse? Round your answer to nearest cent. What was his real raise stated as a percentage? Round your anser to one decimal place.

Use the 2012 FICA tax rates, shown below, to answer the following question. If you are not self-employed and earn $118,000, what are your FICA taxes? Employee's Rates Matching Rates Paid by the Employer Self-Employed Rates 5.65% on first $110,000 7.65% on first $110,000 paid in of income 13.3% on first $110,000 of net profits wages 1.45% of income in excess of $110,000 1.45% of wages paid in excess of 2.9% of net profits in excess $110,000 of $110,000 FICA taxes are $: (Type an integer or a decimal. Round to the nearest cent as needed.)

Dan Dietrich is an executive with Coronado Distributors. His gross earnings are $17,300 per month. a. What are the withholdings for social security and Medicare for Dan’s January paycheck? b. In what month will his salary reach the social security wage base limit? c. What are the social security and Medicare tax withholdings for Dan in the month named in part b?

Answer 2

Textbook Question

Chapter 1, Problem 1DTM

Real Income. Joshua Vermier of Sacramento, California, received a raise after his first year on the job to $45,800 from his initial salary of $44,000. What was Joshua’s raise stated as a percentage? If inflation averaged 2.8 percent for the year, what was his real income after the raise? What was his real raise stated as a percentage?

Expert Solution & Answer

Summary Introduction

To Calculate: Percentage of rise and his real income if inflation is 2.8%.

Concept Introduction: Real income is an income in which amount of inflation is already adjusted. It is calculated by dividing the nominal income from the change in price level. It measures the amount of goods and services purchased out of income.

Explanation of Solution

Given Information: The Salary of employee is $ 44,000 at starting of year one and $ 45,800 at the end of year one.

Percentage raise in income= Current income−Previous incomePrevious income×100

= 45800−4400044000×100

= 4.09%

If inflation is 2.8% then real is income is as follows:

Real income= Current income×100100+inflation rate

= 45800×100100+2.8

= $44,552.53

Real raise in income = Real income−Previous incomePrevious income×100

= 44553−4400044000×100

= 1.26%

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Textbook Question

Chapter 1, Problem 1DTM

Real Income. Joshua Vermier of Sacramento, California, received a raise after his first year on the job to $45,800 from his initial salary of $44,000. What was Joshua’s raise stated as a percentage? If inflation averaged 2.8 percent for the year, what was his real income after the raise? What was his real raise stated as a percentage?

Expert Solution & Answer

Summary Introduction

To Calculate: Percentage of rise and his real income if inflation is 2.8%.

Concept Introduction: Real income is an income in which amount of inflation is already adjusted. It is calculated by dividing the nominal income from the change in price level. It measures the amount of goods and services purchased out of income.

Explanation of Solution

Given Information: The Salary of employee is $ 44,000 at starting of year one and $ 45,800 at the end of year one.

Percentage raise in income= Current income−Previous incomePrevious income×100

= 45800−4400044000×100

= 4.09%

If inflation is 2.8% then real is income is as follows:

Real income= Current income×100100+inflation rate

= 45800×100100+2.8

= $44,552.53

Real raise in income = Real income−Previous incomePrevious income×100

= 44553−4400044000×100

= 1.26%

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Textbook Question

Chapter 1, Problem 1DTM

Real Income. Joshua Vermier of Sacramento, California, received a raise after his first year on the job to $45,800 from his initial salary of $44,000. What was Joshua’s raise stated as a percentage? If inflation averaged 2.8 percent for the year, what was his real income after the raise? What was his real raise stated as a percentage?

Expert Solution & Answer

Summary Introduction

To Calculate: Percentage of rise and his real income if inflation is 2.8%.

Concept Introduction: Real income is an income in which amount of inflation is already adjusted. It is calculated by dividing the nominal income from the change in price level. It measures the amount of goods and services purchased out of income.

Explanation of Solution

Given Information: The Salary of employee is $ 44,000 at starting of year one and $ 45,800 at the end of year one.

Percentage raise in income= Current income−Previous incomePrevious income×100

= 45800−4400044000×100

= 4.09%

If inflation is 2.8% then real is income is as follows:

Real income= Current income×100100+inflation rate

= 45800×100100+2.8

= $44,552.53

Real raise in income = Real income−Previous incomePrevious income×100

= 44553−4400044000×100

= 1.26%

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Textbook Question

Answer 6

Textbook Question

Answer 7

Expert Solution & Answer

Summary Introduction

To Calculate: Percentage of rise and his real income if inflation is 2.8%.

Concept Introduction: Real income is an income in which amount of inflation is already adjusted. It is calculated by dividing the nominal income from the change in price level. It measures the amount of goods and services purchased out of income.

Explanation of Solution

Given Information: The Salary of employee is $ 44,000 at starting of year one and $ 45,800 at the end of year one.

Percentage raise in income= Current income−Previous incomePrevious income×100

= 45800−4400044000×100

= 4.09%

If inflation is 2.8% then real is income is as follows:

Real income= Current income×100100+inflation rate

= 45800×100100+2.8

= $44,552.53

Real raise in income = Real income−Previous incomePrevious income×100

= 44553−4400044000×100

= 1.26%

Answer 8

Expert Solution & Answer

Summary Introduction

To Calculate: Percentage of rise and his real income if inflation is 2.8%.

Concept Introduction: Real income is an income in which amount of inflation is already adjusted. It is calculated by dividing the nominal income from the change in price level. It measures the amount of goods and services purchased out of income.

Explanation of Solution

Given Information: The Salary of employee is $ 44,000 at starting of year one and $ 45,800 at the end of year one.

Percentage raise in income= Current income−Previous incomePrevious income×100

= 45800−4400044000×100

= 4.09%

If inflation is 2.8% then real is income is as follows:

Real income= Current income×100100+inflation rate

= 45800×100100+2.8

= $44,552.53

Real raise in income = Real income−Previous incomePrevious income×100

= 44553−4400044000×100

= 1.26%

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Summary Introduction

To Calculate: Percentage of rise and his real income if inflation is 2.8%.

Concept Introduction: Real income is an income in which amount of inflation is already adjusted. It is calculated by dividing the nominal income from the change in price level. It measures the amount of goods and services purchased out of income.