Question

According to the Seton Hall Career Center, finance majors from the Stillman School of Business eamed an average salary of approximately $60,000 in their first year after graduation. Assume that this will be your salary after graduation. If you carn a 3% raise, what will be your salary the second year on the job? What will be your salary in the fifth year? 2. Assume you start working when you are 20 years old' and work through age 65 (i.e., you work until the day before you tum 66 ). What will be your 45 th and final salary?

Answer 1

After a 3% increase each year, the projected salaries would be approximately $61,800 in the second year, about $69,397.56 in the fifth year, and around $155,292.57 in the 45th year.

Step-by-step explanation:

The question involves calculations based on percentage increase in salaries for a period over certain years. Let's assume the first year's salary after graduation is $60,000. If you get a 3% raise the second year, the salary will be $60,000 + ($60,000 x 0.03) = $61,800.

To compute the salary in the fifth year, we need to apply the same process four times. With a 3% increase each year, the salary in the fifth year would be roughly $69,397.56.

For the 45th and final year of work, we would repeat this 44 times on the initial salary. So, after 45 years of annual raises, the salary comes out to approximately $155,292.57.

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