Auntie Lim runs a hawker stall at Geylang Serai. Her monthly salary is $3000. At the start of the year, her monthly salary increases by 20%. She also receives an annual bonus equal to 2 months of her new monthly salary. What is Auntie Lim's total earnings for the year?
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Worked Solution
Step 1: Find the new monthly salary after a 20% increase:
New monthly salary = $3000 × 1.20 = $3600
Step 2: Find the total annual salary at the new rate:
Annual salary = $3600 × 12 = $43 200
Step 3: Find the annual bonus (2 months of new monthly salary):
Annual bonus = $3600 × 2 = $7200
Step 4: Find Auntie Lim's total earnings for the year:
Total = $43 200 + $7200 = $50 400
Correct answer: $50 400
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