An employee starts a job at $1600 per month on January 1, 2015. At the end of three months their salary is increased 5 percent. At the end of the sixth month, they received another 5 percent increase. What is their total salary for the year?
Question
An employee starts a job at $1600 per month on January 1, 2015. At the end of three months their salary is increased 5 percent. At the end of the sixth month, they received another 5 percent increase. What is their total salary for the year?
Solution
To solve this problem, we need to calculate the salary for each period of the year and then add them together.
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For the first three months (January, February, March), the salary is 1600 = $4800.
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At the end of March, the salary increases by 5%. So, the new salary is 1600 * 5/100) = $1680.
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For the next three months (April, May, June), the salary is 1680 = $5040.
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At the end of June, the salary increases by another 5%. So, the new salary is 1680 * 5/100) = $1764.
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For the remaining six months (July through December), the salary is 1764 = $10584.
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To find the total salary for the year, we add the totals for each period: 5040 + 20424.
So, the employee's total salary for the year is $20424.
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