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Problem of the Week

Problem C and Solution
More for Less
Problem
Harry Wirks is currently paid $567 for working a 45 hour week. His weekly salary is to be
increased by 10% but his hours are to be reduced by 10%. Calculate the change from his old
hourly rate of pay to his new hourly rate of pay.

Solution
Solution 1
To calculate the hourly rate of pay divide the weekly salary by the number of hours worked.
Harrys old hourly rate of pay is $567 45 h = $12.60/h.
New Weekly Salary

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New Number of Hours Worked

Old Weekly Salary + 10% of Old Weekly Salary

$567 + 0.1 $567
$567 + $56.70
$623.70
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Old Hours Worked 10% of Old Hours Worked

45 h 0.1 45 h
45 h 4.5 h
40.5 h

Harrys new hourly rate of pay is $623.70 40.5 h = $15.40/h.

The change in his hourly rate of pay is $15.40/h $12.60/h = $2.80/h.
Harrys hourly rate increased $2.80/h.
Solution 2
In the second solution we will use a more concise calculation. Harrys weekly salary is 10%
more than his old weekly salary. So Harry earns 110% of his old weekly salary. Harrys hours
are reduced by 10% of his old hours so he now works 90% of his old hours. To calculate his
change in hourly rate we can take his new hourly rate and subtract his old hourly rate.
Change in Hourly Rate

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New Hourly Rate Old Hourly Rate

New Salary Hours Worked Old Salary Old Hours Worked
($567 1.10) (45 0.9) $567 45
$623.70 40.5 $567 45
$15.40/h $12.60/h
$2.80/h

Harrys hourly rate increased $2.80/h.