An employee is starting a job with an annnual(yearly) salary of $40,000. The employee's annual salary will increase by 3% at the end of each year with the company.
What will the employee's annual salary, in dollars, be at the end of the second year with the company?
(1 point)
A. $1200
B. $41,200
C. $42,436
D. $1236
B. $41,200
Explanation:
At the end of the first year, the employee's salary will be $40,000 + 3% of $40,000 = $40,000 + $1,200 = $41,200.
At the end of the second year, the employee's salary will be $41,200 + 3% of $41,200 = $41,200 + $1,236 = $42,436.