An employee is starting a job with an annual salary of $65,000. The employee’s annual salary will increase by 3% at the end of each year with the company. What will the employee’s annual salary, in dollars, be at the end of the second year with the company?(1 point) Responses $63,050.50 63 dollars comma 050 point 5 0 $65,300.00 65 dollars comma 300 point 0 0 $66,950.00 66 dollars comma 950 point 0 0 $68,958.50

Question

An employee is starting a job with an annual salary of $65,000. The employee’s annual salary will increase by 3% at the end of each year with the company. What will the employee’s annual salary, in dollars, be at the end of the second year with the company?(1 point) Responses $63,050.50 63 dollars comma 050 point 5 0 $65,300.00 65 dollars comma 300 point 0 0 $66,950.00 66 dollars comma 950 point 0 0 $68,958.50

Answer 1

To find the employee's annual salary at the end of the second year, we need to calculate the increase in salary for two years.

First, calculate the increase in salary for the first year:
Increase = Annual Salary * 3% = $65,000 * 0.03 = $1,950
New Annual Salary after the first year = Annual Salary + Increase = $65,000 + $1,950 = $66,950

Next, calculate the increase in salary for the second year:
Increase = New Annual Salary * 3% = $66,950 * 0.03 = $2,008.50
New Annual Salary after the second year = New Annual Salary + Increase = $66,950 + $2,008.50 = $68,958.50

Therefore, the employee's annual salary at the end of the second year will be $68,958.50.