Question

You are offered a job that pays $45,000 during the first year, with an annual increase of 5% per year beginning in the second year. Assuming this increase continues, what will your salary be in year 2? Your salary will be _______ in year 2.

Answer 1

The salary in year 2 will be $47,250.

Step-by-step explanation:

To calculate the salary in year 2, we need to apply the annual increase of 5% to the initial salary of $45,000. To find the increase, we can use the formula:

Annual Increase = Initial Salary imes (Annual Increase Rate/100)

So, the increase in year 2 is $45,000 imes (5/100) = $2,250. Adding this increase to the initial salary, year 2's salary will be $45,000 + $2,250 = $47,250.