1. **State the problem:** Liam’s current salary is 76000. He will receive a 5% increase on 1 July and then another 5% increase on 1 January. We need to find his new salary from 1 January. 2. **Formula for salary increase:** When a salary increases by a percentage $p\%$, the new salary is calculated as $$\text{New Salary} = \text{Old Salary} \times \left(1 + \frac{p}{100}\right)$$ 3. **Calculate salary after first increase (1 July):** $$\text{Salary after 1 July} = 76000 \times \left(1 + \frac{5}{100}\right) = 76000 \times 1.05 = 79800$$ 4. **Calculate salary after second increase (1 January):** $$\text{Salary after 1 January} = 79800 \times \left(1 + \frac{5}{100}\right) = 79800 \times 1.05 = 83790$$ 5. **Explain the process:** - First, we increase the salary by 5% on 1 July, which means multiplying by 1.05. - Then, the new salary is increased again by 5% on 1 January, so we multiply the updated salary by 1.05 again. - This is a compound increase, so the total increase is not simply 10% but slightly more. 6. **Final answer:** Liam’s new salary from 1 January will be $83790$.