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?
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To calculate the employee's salary at the end of the second year with the company, we need to find the 3% increase for the second year.
First, calculate the 3% increase for the first year:
3% of $40,000 = 0.03 x $40,000 = $1,200
Add this increase to the employee's initial salary:
$40,000 + $1,200 = $41,200
Now, calculate the 3% increase for the second year based on the salary at the end of the first year:
3% of $41,200 = 0.03 x $41,200 = $1,236
Add this increase to the salary at the end of the first year to find the employee's salary at the end of the second year:
$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.