Question

You accept a new job with a starting salary of $51,000. You receive a 3% raise at the start of your second year, a 5.6% raise at the start of your third year, and an 11.1%raise at the start of your fourth year. (Round your answers to two decimal places.)

(a) Find your salary for the second year.$
(b) Find your salary for the third year.$
(c) Find your salary for the fourth year.$

Answer 1

(a) Salary for the second year= $52,530

(b) Salary for the third year=$55,471.68

(c) Salary for the fourth year=$61,573.56

Explanation:

a. To find the salary for the second year, you have to calculate the 3% of the base salary and added it to it:

Base salary= $51,000

$51,000*3%= $1,530

$51,000+$1,530= $52,530

Salary for the second year= $52,530

b. To find the salary for the third year, you have to calculate the 5.6% of the salary for the second year and add it to the salary:

$52,530*5.6%=$2,941.68

$52,530+$2,941.68= $55,471.68

Salary for the third year=$55,471.68

c. To find the salary for the fourth year, you have to calculate the 11.1% of the salary for the third year and add it to that salary:

$55,471.68*11.1%=$6,101.88

$55,471.68+$6,101.88=$61,573.56

Salary for the fourth year=$61,573.56