2. Value of salary during a job interview. Pam Thompson is offered a salary of $28,000 the company gives annual rises of 6 percent. What would be Palm’s salary during her fifth year on the job?
To determine Pam Thompson's salary during her fifth year on the job, we need to calculate the annual raise and apply it to her initial salary each year.
Here is how you can calculate the salary for each year:
1. Start with the initial salary: $28,000
2. Calculate the raise for each year: 6 percent of the previous year's salary
Now, let's calculate Pam's salary during her fifth year:
Year 1:
Salary = $28,000
Year 2:
Raise = 6% of $28,000 = $1,680
New Salary = $28,000 + $1,680 = $29,680
Year 3:
Raise = 6% of $29,680 = $1,780.80
New Salary = $29,680 + $1,780.80 = $31,460.80
Year 4:
Raise = 6% of $31,460.80 = $1,887.65
New Salary = $31,460.80 + $1,887.65 = $33,348.45
Year 5:
Raise = 6% of $33,348.45 = $2,000.91
New Salary = $33,348.45 + $2,000.91 = $35,349.36
Therefore, Pam Thompson's salary during her fifth year on the job would be $35,349.36