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)
A. $63,050.50
B. $65,300.00
C. $66,950.00
D. $68,958.50
To find the employee's annual salary at the end of the second year, we need to apply a 3% increase to the initial salary twice.
First, we calculate the increase for the first year:
Increase = 3% of $65,000 = (3/100) * $65,000 = $1,950
The salary after the first year is therefore:
$65,000 + $1,950 = $66,950
Now, we calculate the increase for the second year:
Increase = 3% of $66,950 = (3/100) * $66,950 = $2,008.50
The salary at the end of the second year is therefore:
$66,950 + $2,008.50 = $68,958.50
So, the correct answer is D. $68,958.50.