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An employee is starting a job with an annual salary of $40,000. The employee's salary will increase by 3% at the end of each year with the company.

Complete the following prompts.

(4 points)
*Do not round or enter any commas in the response.*

What is the amount of the raise, in dollars, at the end of the first year? $

What will the employee's annual salary, in dollars, be at the end of the first year with the company? $

What is the amount of the raise, in dollars, at the end of the second year? $

What will the employee's annual salary, in dollars, be at the end of the second year with the company? $

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1 answer

To calculate the amounts as requested, we will follow these steps:

  1. Calculate the raise at the end of the first year.

    • The initial salary is $40,000.
    • The raise is 3% of $40,000.
    • Raise = 0.03 * 40000 = 1200.

  2. Calculate the annual salary at the end of the first year.

    • The new salary is the initial salary plus the raise.
    • New salary = 40000 + 1200 = 41200.

  3. Calculate the raise at the end of the second year.

    • The salary at the end of the first year is $41,200.
    • The raise is 3% of $41,200.
    • Raise = 0.03 * 41200 = 1236.

  4. Calculate the annual salary at the end of the second year.

    • The new salary is the salary at the end of the first year plus the raise.
    • New salary = 41200 + 1236 = 42436.

Now, let's put down the answers:

  1. The amount of the raise at the end of the first year: 1200

  2. The employee's annual salary at the end of the first year: 41200

  3. The amount of the raise at the end of the second year: 1236

  4. The employee's annual salary at the end of the second year: 42436