During a job interview, Pam Thomson is offered a salary of $28,000. The Company gives annual raises of 6 percent. What would be Pam's salary during her fifth year on the job?
$28,000 * 1.06^4 = $35,349.35
first year 28 k
second year 28 k * 1.06^1
third year 28 k * 1.06^2 etc
To calculate Pam's salary during her fifth year on the job, we need to calculate the annual raises and add them to her initial salary.
Step 1: Calculate the raise percentage
Annual raises are 6 percent. So, the raise percentage is 6/100 = 0.06.
Step 2: Calculate the salary increase for each year
In the first year, there are no raises, so the increase is 0 percent. In the second year, the salary increases by 6 percent, in the third year by another 6 percent, and so on.
Step 3: Calculate the salary for each year
Use the formula: new salary = (1 + raise percentage) * previous salary
Year 1: Salary = $28,000
Year 2: Salary = (1 + 0.06) * $28,000 = $29,680
Year 3: Salary = (1 + 0.06) * $29,680 = $31,364.80
Year 4: Salary = (1 + 0.06) * $31,364.80 = $33,281.41
Year 5: Salary = (1 + 0.06) * $33,281.41 = $35,301.97
Therefore, Pam's salary during her fifth year on the job would be $35,301.97.
To calculate Pam's salary during her fifth year on the job, we need to apply the annual raises of 6 percent to her initial salary of $28,000.
To calculate the salary after the first year, we'll add 6 percent of $28,000 to her initial salary:
Salary after the first year = $28,000 + (0.06 * $28,000) = $29,680
To calculate the salary after the second year, we'll add 6 percent of $29,680 to the previous salary:
Salary after the second year = $29,680 + (0.06 * $29,680) = $31,364.80
We continue this process for the third and fourth years, calculating the new salary each year:
Salary after the third year = $31,364.80 + (0.06 * $31,364.80) = $33,228.93
Salary after the fourth year = $33,228.93 + (0.06 * $33,228.93) = $35,293.18
Finally, to calculate the salary during her fifth year, we'll add 6 percent of the salary after the fourth year:
Salary after the fifth year = $35,293.18 + (0.06 * $35,293.18) = $37,422.90
Therefore, Pam's salary during her fifth year on the job would be $37,422.90.