An employee is starting a job with an annual salary of $65,000. The employee’s annual salary will increase by 3% at the end of each year with the company. What will the employee’s annual salary, in dollars, be at the end of the second year with the company?
A. $63,050.50
B. $65,300.00
C. $66,950.00
D. $68,958.50
At the end of the first year, the employee's annual salary will be $65,000 + 3% of $65,000 = $65,000 + $1,950 = $<<65000+1950=66950>>66,950.
At the end of the second year, the employee's annual salary will be $66,950 + 3% of $66,950 = $66,950 + $2,008.5 = $<<66950+2008.5=68958.5>>68,958.50.
Therefore, the employee's annual salary at the end of the second year with the company will be $68,958.50.
The answer is D. $68,958.50.