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? $

1 answer

  1. The amount of the raise at the end of the first year is calculated as 3% of the initial salary of $40,000:

    \[ \text{Raise} = 0.03 \times 40000 = 1200 \]

    So, the raise at the end of the first year is $1200.

  2. The employee's annual salary at the end of the first year will be the initial salary plus the raise:

    \[ \text{End of Year 1 Salary} = 40000 + 1200 = 41200 \]

    So, the annual salary at the end of the first year is $41200.

  3. The amount of the raise at the end of the second year will be 3% of the new salary of $41,200:

    \[ \text{Raise} = 0.03 \times 41200 = 1236 \]

    So, the raise at the end of the second year is $1236.

  4. The employee's annual salary at the end of the second year will be the salary at the end of the first year plus the raise:

    \[ \text{End of Year 2 Salary} = 41200 + 1236 = 42436 \]

    So, the annual salary at the end of the second year is $42436.