Question

You are offered a job that pays ​$45,000 during the first​ year, with an annual increase of ​7% per year beginning in the second year. That​ is, beginning in year​ 2, your salary will be 1.07 times what it was in the previous year. What can you expect to earn in your fourth year on the​ job? Round your answer to the nearest dollar.

Answer 1

To calculate the salary in the fourth year, we need to find the salary for each year:

Year 1: $45,000

Year 2: $45,000 x 1.07 = $48,150

Year 3: $48,150 x 1.07 = $51,581.50

Year 4: $51,581.50 x 1.07 = $55,304.10

Therefore, the expected salary in the fourth year is $55,304.10 rounded to the nearest dollar, which is $55,304.