Jim begins a job with a starting salary of 27000 dollars. she is guaranteed a raise of 4.75% each year. Sarah also starts a job with a salary of 27000 dollars, she is guaranteed a raise of 1500 dollars each year.
What will be Jim's salary after five years
To calculate Jim's salary after five years, we need to consider the guaranteed raise of 4.75% each year.
1. Start with Jim's starting salary: $27,000
2. Calculate the annual raise: $27,000 * 4.75% = $1,282.50
3. Add the annual raise to the starting salary to get Jim's salary after the first year: $27,000 + $1,282.50 = $28,282.50
4. Repeat this process for the next four years, adding the raise each year:
- Year 2: $28,282.50 + $1,282.50 = $29,565.00
- Year 3: $29,565.00 + $1,282.50 = $30,847.50
- Year 4: $30,847.50 + $1,282.50 = $32,130.00
- Year 5: $32,130.00 + $1,282.50 = $33,412.50
Therefore, after five years, Jim's salary will be $33,412.50.