Question

You made $42,500 in 2012. Your raises in 2013, 2014, 2015, 2016, and 2017 were 4.5%, 3%, 2.5%, 6% and 2%. What do you make now?

Answer 1

Answer: $50,695.84

Step-by-step explanation

A raise of 4.5% means we involve the multiplier 1.045

Think of it like saying 100% + 4.5% = 1 + 0.045 = 1.045

If the raises were 4.5%, 3%, 2.5%, 6% and 2%, then the multipliers involved would be 1.045, 1.03, 1.025, 1.06, and 1.02

We can multiply them together to get the overall percent increase.

1.045*1.03*1.025*1.06*1.02 = 1.19284336 approximately

This represents about a 19.28% raise.

Multiply this value with the starting salary to find the new salary

1.19284336*42500 = 50,695.8428 = 50,695.84