what will your salary be after 5 years.

Question

your first job pays $30,000 a year. after the first year you will get a 3% raise. after the fifth year, you will get a 6% raise. what will your salary be after 5 years?

Answer 1

I see this as an employee getting 2 raises, one after 1 year of work, then a second raise after 5 years of work. Since the first rate is 3% of the salary, the new salary will be 30,000 x 1.03 = $30,900 (per year for the next 4 years). Then, after working 5 years, the salary will increase by 6%, thus 30,900 x 1.06 = $32,754.  (Another way of calculating is to just calculate the actual raise in salary, 30,000 X 3% = $900, which is added to the 30,000 to get 30,900. Then the second raise is 30,900 X 6% = $1,854, which, when added to 30,900 is 32,754.)