Solution
Initial pay = $16.25
New pay after increase = $18.20
Increase in pay = $18.20 - $16.25= $1.95
[tex]\begin{gathered} \text{ Percentage increase = }\frac{in\text{crease in pay}}{\text{Initial pay}}\text{ x 100} \\ \\ =\text{ }\frac{1.95}{16.25}\text{ x 100} \\ =12\text{ \%} \end{gathered}[/tex]The answer is 12%