Mr.Ngate is a consultant With Nitsumi computer garages. At the end of the first month,his basic salary was ksh 88400 and his monthly basic salary during the last month of the contract was ksh 117800.By the end of the contract, he had earned a total salary of ksh 824800.Given that the annual increment rate was constant. a) Calculate the period that the contract lasted. b) his monthly increment. c) Mr.Ngate's contract was extended after the period in (a) for a further 4 months. In this extension his monthly basic salary was increased by 4% every month. Determine the total salary that he earned by the end of the year.Give your answer to the nearest ksh.
a) To calculate the period that the contract lasted, we need to find the difference in salary between the first and last month and divide it by the monthly increment.
Difference in salary = 117800 - 88400 = 29400
Total increment = 824800 - 88400 = 736400
Period of contract = Total increment / Difference in salary = 736400 / 29400 = 25 months
So, the contract lasted for 25 months.
b) To calculate the monthly increment, we divide the total increment by the period of contract.
Monthly increment = Total increment / Period of contract = 736400 / 25 = 29456
So, the monthly increment is Ksh 29456.
c) In the extension period, Mr.Ngate's monthly basic salary increased by 4% every month. We need to calculate the total salary earned in this extension period.
Monthly basic salary during extension = Ksh 117800
Total salary earned in extension = Monthly basic salary during extension x Number of months
Number of months = 4
We will calculate the monthly salary for each month and add them to get the total salary earned.
Total salary earned = (117800 + 117800 x 0.04) + (117800 + 2 x 117800 x 0.04) + (117800 + 3 x 117800 x 0.04) + (117800 + 4 x 117800 x 0.04)
= (117800 + 4712) + (117800 + 9432) + (117800 + 14148) + (117800 + 18864)
= 122512 + 127232 + 132948 + 138664
= 521356
So, the total salary earned by the end of the year is approximately Ksh 521356.