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Credential Verification Specialist

Real-Life Activities

Real-Life Math -- Solution

First, work out what the budget was for this year.

Current budget

Residents = 30 residents x $55,000
Residents = $1,650,000

General physicians = 36 x $80,000
General physicians = $2,880,000

Specialist physicians = 34 x $100,000
Specialist physicians = $3,400,000

Total = $7,930,000

Next year's budget

Residents' increase = $55,000 x 0.10
Residents' increase = $5,500

New residents total = ($55,000 + $5,500) x 30
New residents total = $60,500 x 30

New residents total = $1,815,000

General physicians' increase = $80,000 x 0.025
General physicians' increase = $2,000

New GP total = ($80,000 + $2,000) x 36
New GP total = $82,000 x 36

New GP total = $2,952,000

Specialist physicians' increase = $100,000 x 0.03
Specialist physicians' increase = $3,000

New specialist total = ($100,000 + $3,000) x 34
New specialist total = $103,000 x 34

New specialist total = $3,502,000

Grand total = $1,815,000 + $2,952,000 + $3,502,000
Grand total = $8,269,000

Now, what is the total percentage increase?

$8,269,000 - $7,930,000 = $339,000
$339,000 / $7,930,000 x 100 = 4.2 percent increase

Next year, your budget will increase by $339,000, or 4.2 percent.


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