During a job interview Pam Thompson is offered a salary of $2800. The company gives annual raises of 6 percent. What would be Pams salery during her 5th year on the job?

What is 2800(1.06)^5

To calculate Pam's salary during her 5th year on the job, we need to consider the annual raises. Each year, Pam's salary increases by 6 percent.

To find the salary in the 5th year, we can use the formula:

New Salary = Initial Salary + (Initial Salary * Rate of Increase)

Let's calculate Pam's salary for each year:

Year 1:
Initial Salary = $2800
Rate of Increase = 6% = 0.06

New Salary (Year 1) = $2800 + ($2800 * 0.06) = $2800 + $168 = $2968

Year 2:
Initial Salary = $2968
Rate of Increase = 6% = 0.06

New Salary (Year 2) = $2968 + ($2968 * 0.06) = $2968 + $178.08 = $3146.08

Year 3:
Initial Salary = $3146.08
Rate of Increase = 6% = 0.06

New Salary (Year 3) = $3146.08 + ($3146.08 * 0.06) = $3146.08 + $188.76 = $3334.84

Year 4:
Initial Salary = $3334.84
Rate of Increase = 6% = 0.06

New Salary (Year 4) = $3334.84 + ($3334.84 * 0.06) = $3334.84 + $200.09 = $3534.93

Year 5:
Initial Salary = $3534.93
Rate of Increase = 6% = 0.06

New Salary (Year 5) = $3534.93 + ($3534.93 * 0.06) = $3534.93 + $212.10 = $3747.03

Therefore, Pam's salary during her 5th year on the job would be $3747.03.