Question

You accept a new job with a starting salary of $53,000. You receive a 4% raise at the start of your second year, a 5.5% raise at the start of your third year, and an 11.1% raise at the start of your fourth year. (Round your answers to two decimal places.)

Answer 1

Answer:

a. Salary for the second year:

Salary is to increase by 4% in second year.

= 53,000 * (1 + 4%)

= $55,120

b. Third year salary:

Second year salary will increase by 5.5%

= 55,120 * (1 + 5.5%)

= $58,151.60

c. Fourth year salary:

Third year salary to increase by 11.1%

= 58,151.60 * (1 + 11.1%)

= $64,606.43