An employee is starting a job with an annual(yearly) salary of $40,000.
The employee's salary will increase by 3% at the end of each year with the company.
What will the employee's salary, in dollars, be at the end of the second year with the company?
To calculate the employee's salary at the end of the second year, we need to apply a 3% increase to the salary at the end of the first year.
First, calculate the salary at the end of the first year:
Salary at the end of the first year = $40,000 + ($40,000 * 3%) = $40,000 + ($40,000 * 0.03) = $40,000 + $1,200 = $41,200
Now, apply a 3% increase to the salary at the end of the first year to calculate the salary at the end of the second year:
Salary at the end of the second year = $41,200 + ($41,200 * 3%) = $41,200 + ($41,200 * 0.03) = $41,200 + $1,236 = $42,436
Therefore, the employee's salary at the end of the second year with the company will be $42,436.