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)
$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
To calculate the employee's annual salary at the end of the second year, we need to find the 3% increase on the initial salary of $65,000.
First-year salary: $65,000
Annual increase: 3%
To find the increase, we can multiply the initial salary by the decimal form of the percentage increase:
Increase = $65,000 * 0.03 = $1,950
Adding this increase to the initial salary gives us the first-year salary:
First-year salary = $65,000 + $1,950 = $66,950
Now, for the second-year salary, we apply the same process. We take the first-year salary of $66,950 and find the 3% increase:
Increase = $66,950 * 0.03 = $2,008.50
Adding this increase to the first-year salary gives us the second-year salary:
Second-year salary = $66,950 + $2,008.50 = $68,958.50
Therefore, the employee's annual salary at the end of the second year with the company will be $68,958.50.