The individual needs to earn $74,750 salary per year in order to recover the investment in 4 years.
What salary amount makes the individual as they were without a salary cut?
By the time the individual resumes back for work after 5 years, they need to earn their previous salary of $46,000 and recover the lost salaries, which is half of $46,000 lost in the last 5 years.
Total salaries lost=1/2*$46,000*5years
Total salaries lost=$115,000
Because the salaries lost needs to be recovered over 4 years, the extra earnings over and above the $46,000 in 4 years is the total salaries lost divided by 4 years
extra salary per year=$115,000/4
extra salary per year=$28,750
Total salary now=prior salary+ extra salary per year
Total salary now=$46,000+$28,750
Total salary now=$74,750
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