Question

A man joined a company as assistant manager . the company gave him a starting salary of rd 60000 and agreed to increase his salary 5% annually . what will be his salary after 5 years​

Answer 1

Answer:

Starting salary   =  60,000  

Every year 5% of annual salary is increasing.

Second year salary  =  60000 + 5% of 60000

 =  60000(1 + 5%)

Third year salary  =  60000 + 5% of 60000(1 + 5%)

 =  60000(1 + 5%)(1 + 5%)

 =  60000(1 + 5%)2

By continuing in this way,  salary after 5 years is

 =  60000(1 + 5%)5

 =  60000(105/100)5

 =  60000(1.05)5  

 =  76577

Explanation: