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Percentage problem

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Alan's annual salary is $20,040. Next month he will receive a 5.5% cost of living adjustment and a 4% merit increase. What will be his new annual salary?
a.$22,338 b.$21,943.80 c.$23,263.00 d.$21,22.00
e.not given

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<br>The increases are added up. So Alan will get a nominal raise of ...

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