To calculate the employee's salary at the end of the second year, we need to apply a 3% increase to the salary at the end of the first year.
First, calculate the salary at the end of the first year:
Salary at the end of the first year = $40,000 + ($40,000 * 3%) = $40,000 + ($40,000 * 0.03) = $40,000 + $1,200 = $41,200
Now, apply a 3% increase to the salary at the end of the first year to calculate the salary at the end of the second year:
Salary at the end of the second year = $41,200 + ($41,200 * 3%) = $41,200 + ($41,200 * 0.03) = $41,200 + $1,236 = $42,436
Therefore, the employee's salary at the end of the second year with the company will be $42,436.
An employee is starting a job with an annual(yearly) salary of $40,000.
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?
1 answer