1 answer
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$41,200
Calculation:
Year 1:
$40,000 + 3% of $40,000 = $40,000 + $1,200 = $41,200
Year 2:
$41,200 + 3% of $41,200 = $41,200 + $1,236 = $42,436
Therefore, the employee's salary at the end of the second year will be $42,436.