An employee is starting a job with an annual salary of $65,000. The employees annual salary will increase by 3% at the end of each year with the company. What will the employees annual salary in dollars be at the end of the second year with the company?
To find the employee's annual salary at the end of the second year, we need to calculate the 3% increase for two years.
First, calculate the 3% increase for the first year: $65,000 * 0.03 = $<<65000*0.03=1950>>1,950 increase
Add the increase to the starting salary for the first year: $65,000 + $1,950 = $<<65000+1950=66950>>66,950
Next, calculate the 3% increase for the second year: $66,950 * 0.03 = $<<66950*0.03=2008.5>>2,008.5 increase
Add the increase to the starting salary for the second year: $66,950 + $2,008.5 = $<<66950+2008.5=68958.5>>68,958.5
At the end of the second year, the employee's annual salary will be $68,958.5.