In calendar 2011, you earned a salary of $60,000. You expect to be given 5% annual merit increases on January 1 of each year for the foreseeable future. What is your projected annual salary in 2015
To calculate your projected annual salary in 2015, we need to consider the annual merit increases for each year from 2011 to 2015.
First, let's calculate the merit increase for each year:
2011: $60,000
2012: $60,000 + (5% of $60,000)
2013: $60,000 + (5% of $60,000) + (5% of the new salary for 2012)
2014: $60,000 + (5% of $60,000) + (5% of the new salary for 2013)
Now, let's calculate the projected salary for 2015:
2011: $60,000
2012: $60,000 + (5% of $60,000) = $63,000
2013: $60,000 + (5% of $60,000) + (5% of $63,000) = $66,150
2014: $60,000 + (5% of $60,000) + (5% of $63,000) + (5% of $66,150) = $69,458.75
Therefore, your projected annual salary in 2015 would be approximately $69,458.75.