Damon Khalid is a writer for the Sunday Journal News. His salary at level 3 is $37,500. Next month he will receive a yearly cost-of-living adjustment of 2.7 percent. In addition, his manager will award him a merit increase of 5.0 percent. What will Khalid’s salary be for the coming year?

To calculate Damon Khalid's new salary after the cost-of-living adjustment and merit increase, we can follow these steps:

1. **Cost-of-Living Adjustment (COLA)**:
   - Current salary: $37,500
   - COLA percentage: 2.7%
   - Increase due to COLA: $ 37,500 \times \frac{2.7}{100} = 1,012.50 $

2. **New Salary after COLA**:
   - New salary after COLA: $ 37,500 + 1,012.50 = 38,512.50 $

3. **Merit Increase**:
   - Merit increase percentage: 5.0%
   - Increase due to merit: $ 38,512.50 \times \frac{5.0}{100} = 1,925.625 $

4. **Final Salary**:
   - Final salary after both increases: $ 38,512.50 + 1,925.625 = 40,438.13 $

So, Damon Khalid’s salary for the coming year will be **$40,438.13**.

Would you like more details or have any questions?

Here are five related questions you might find interesting:
1. What would Khalid's salary be if the merit increase was 7% instead of 5%?
2. How much would Khalid’s salary increase if only the cost-of-living adjustment was applied?
3. If Damon Khalid's salary was $40,000, what would his new salary be after the same adjustments?
4. What is the overall percentage increase in Khalid's salary after both adjustments?
5. How would the final salary change if the cost-of-living adjustment was 3% instead of 2.7%?

**Tip:** Always calculate percentage increases sequentially rather than adding the percentages directly, to ensure accuracy.

Calculate Damon Khalid's salary after a 2.7% cost-of-living adjustment and a 5.0% merit increase. Understand the steps involved and learn the formula for percentage increase. Suitable for Grades 7-9.

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