Question

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An employee receives a 4% raise once per year. If the employee’s initial salary is $40,000, what will the employee’s salary be after 8 years?

Answer 1

Answer: $54,742.75

Step-by-step explanation:

Each year you need to multiply the employee's current salary by 4% (in decimal form this is 0.04). Then you add the result to their current salary.

Year 1

40000 * 0.04 = 1600

40000 + 1600 = 41600

Year 2

41600 * 0.04 = 1664

41600+ 1664 = 43264

Year 3

43264 * 0.04 = 1730.56

43264+ 1730.56 = 44994.56

Year 4

44994.56 * 0.04 = 1799.78

44994.56+ 1799.78 = 46794.34

Year 5

46794.34 * 0.04 = 1871.77

46794.34+ 1871.77 = 48666.11

Year 6

48666.11 * 0.04 = 1946.64

48666.11+ 1946.64 = 50612.75

Year 7

50612.75 * 0.04 = 2024.51

50612.75+ 2024.51 = 52637.26

Year 8

52637.26 * 0.04 = 2105.49

52637.26+ 2105.49 = 54742.75