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?
To calculate the employee's salary at the end of the second year, we first need to calculate the salary increase for the first year:
Salary increase for the first year = $40,000 * 3% = $40,000 * 0.03 = $1,200
So, the employee's salary at the end of the first year will be $40,000 + $1,200 = $41,200.
Now, we need to calculate the salary increase for the second year based on the new salary of $41,200:
Salary increase for the second year = $41,200 * 3% = $41,200 * 0.03 = $1,236
Therefore, the employee's salary at the end of the second year with the company will be $41,200 + $1,236 = $42,436.