How to solve a payroll problem?

Question

Suppose, I am earning a minimum wage of 7.50 dollars in month A and

Suppose, in month B, I get a 3 percent raise after working for 6 months, and suppose there is a change in minimum wages from 7.50 to 7.75 per hour in month C.

What is my new earning wage per hour considering all the above changes?

Answer 1

You're probably going to be earning the new minimum wage.  A three percent increase on $7.50 is 22.5 cents, bringing you up to $7.725.  This is less than the new minimum wages in month C, so your boss will have to give you another raise of 2.5 cents to bring you up to the $7.75 minimum wage.

Of course, if your boss is real nice, he could raise your wage another 25 cents, the same amount as the minimum wage increase, up to $7.975 so that you're the same distance above the new minimum wage as you were in month B before the minimum wage increased.  

Hope that makes sense.