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 point) Responses $1200 $1200 $41,200 $41,200 $42,436 $42,436 $1236 $1236 Skip to navigation

Question

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 point) Responses $1200 $1200 $41,200 $41,200 $42,436 $42,436 $1236 $1236 Skip to navigation

Answer 1

At the end of the first year, the employee's salary will increase by 3%, which is $40,000 * 0.03 = $1200. Therefore, the salary at the end of the first year will be $40,000 + $1200 = $41,200.

At the end of the second year, the employee's salary will increase by 3% of $41,200, which is $41,200 * 0.03 = $1236. Therefore, the employee's salary at the end of the second year will be $41,200 + $1236 = $42,436.

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