An employee is starting a job with an annual salary of $65,000. The employee's annual salary will increase by 3% at the end of each year with the company. What will be the employee's annual salary, in dollars, be at the end of the second year with the company?
$63,050.50
$65,300.00
$66,950.00
$68,958.50
To find the employee's salary at the end of the second year, we need to calculate the 3% increase after each year.
After the first year, the employee's salary will increase by 3%:
Salary after the first year = $65,000 + (3% * $65,000) = $65,000 + $1,950 = $66,950
After the second year, the employee's salary will increase by 3%:
Salary after the second year = $66,950 + (3% * $66,950) = $66,950 + $2,008.50 = $68,958.50
Therefore, the employee's annual salary at the end of the second year will be $68,958.50. The correct answer is $68,958.50.