A WNBA player just signed a new contract in which she will earn a 5% increase in base pay from last year to this year. Last year, she did not have a performance bonus; but this year, she will have the opportunity to earn up to a $40,000 performance bonus. If she earns the full performance bonus, her new effective salary will be a 7% raise over last year. What will her new salary be if she earns the full performance bonus? Pick one.
A) 2,120,000  B) 2,140,000  C) 2,180,000  D) 2,240,000  E) 2,260,000
let x = last year's salary   the new base pay + 40,000 = the new effective pay   (1+.05)*x + 40,000 = (1+.07)*x   1.05x + 40,000 = 1.07x   40,000 = .02x   2,000,000 = x   thus the new salary = (1+.07)*2,000,000 = 2,140,000   2,140,000
<result>B</result>
A WNBA player just signed a new contract in which she will earn a 5% increase in base pay from last year to this year. Last year, she did not have a performance bonus; but this year, she will have the opportunity to earn up to a $40,000 performance bonus. If she earns the full performance bonus, her new effective salary will be a 7% raise over last year. What will her new salary be if she earns the full performance bonus?