Cary starts working at Game Stop for $10/hour. She gets a 20% raise the first year, but the second year the company's profits decrease and her pay is cut to 75% of what it used to be. How much does Cary make now? Give me reasons, before answering the question
First find the amount of Cary's raise by multiplying $10 by 20%: $10 * .2 = $2. Then add Cary's raise to her initial wage to find her wage after one year: $10 + $2 = $12. Then multiply that wage by 75% to find Cary's wage after her pay cut: $12 * .75 = $9. So the final answer is 9.