An employee is starting a job eith an annual salary of $40,000.

Question

The employee's salary will increase by 3% at the end of each year with the company.
What will the employee's salary, in dollars, be at the end of the second year with the company?

Answer 1

To calculate the employee's salary at the end of the second year, we first need to determine the salary increase for the first year.

Salary increase for the first year = $40,000 * 3% = $1,200

Therefore, the employee's salary at the end of the first year will be: $40,000 + $1,200 = $41,200

Now we will calculate the salary increase for the second year:

Salary increase for the second year = $41,200 * 3% = $1,236

Therefore, the employee's salary at the end of the second year will be: $41,200 + $1,236 = $42,436

So, the employee's salary at the end of the second year with the company will be $42,436.