If a person is given a certain percentage increase on their salary, how is the new salary typically calculated?

To determine a new salary after a percentage increase, the typical approach is to add the calculated increase to the old salary. First, you find out what the percentage increase amounts to by calculating the percentage of the old salary. This involves multiplying the old salary by the percentage expressed as a decimal. Once you have the increase amount, you then add it to the old salary to obtain the new salary.

For instance, if an employee has a salary of $50,000 and receives a 10% increase, you would calculate the increase as $50,000 multiplied by 0.10, which equals $5,000. By adding this amount back to the original salary, the new salary would be $55,000. This process illustrates why the correct method for calculating a new salary following a percentage increase is to add the percentage of the old salary to the original salary.