Question

After college you start a job earning $40,000 a year. You get a 6% raise each year.

Answer 1

Answers: A) $44,944
B) $50,499.0784


Math: Using the percentage calculator linked below 6% of $40,000 is $2,400. Since you're getting your second raise after your first and since it is a 6% raise from what you're getting paid at that time we add pay raise 1 to your starting pay before calculating the 6% for pay raise 2. $40,000+$2,400=$42,400. 6% of $42,400 is $2,544. $42,400+$2,544=$44,944, Since that is two pay raises that would be your earnings at the end of year two (answer A).
We continue calculating 6% then adding that onto the total before calculating it for the next year for problem B.
6% of $44,944 is $2,696.64. $44,944+$2,696.64=$47,640.64.
6% of $47,640.64 is $2,858.4384. $47,640.64+$2,858.4384=$50,499.0784. That's answer B.


Hopefully you can figure out C on your own! I feel a little bad for giving a partial answer but I think you can do this!

Percentage calculator used-https://percentagecalculator.net/
Note: can't handle commas, remove all commas before entering data in.