An employee is starting a job with an annual salary of $65,000. The employees annual salary will increase by 3% at the end of each year with the company. What will the employees annual salary in dollars be at the end of the second year with the company?

Answer 1

To find the employee's annual salary at the end of the second year, we need to calculate the 3% increase for two years.

First, calculate the 3% increase for the first year: $65,000 * 0.03 = $<<65000*0.03=1950>>1,950 increase
Add the increase to the starting salary for the first year: $65,000 + $1,950 = $<<65000+1950=66950>>66,950

Next, calculate the 3% increase for the second year: $66,950 * 0.03 = $<<66950*0.03=2008.5>>2,008.5 increase
Add the increase to the starting salary for the second year: $66,950 + $2,008.5 = $<<66950+2008.5=68958.5>>68,958.5

At the end of the second year, the employee's annual salary will be $68,958.5.