document.write( "Question 1179519: A man gets a raise of 12% in salary at end of first year and further raises of 16% ,19% and 25% at the end of second, third and fourth years respectively; the raise in each year being calculated on his salary at the beginning of the year. What is the average annual percentage increase?
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Algebra.Com's Answer #809130 by ikleyn(52787) $\"\"$ $\"About$

You can put this solution on YOUR website!
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\n" ); document.write( "\n" ); document.write( " @greenestamps correctly noticed that this problem formulation admits SEVERAL different interpretations.\r
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\n" ); document.write( "\n" ); document.write( " I came with my own interpretation and with my own solution.\r
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document.write( "After the 1st year, the salary is  1.12  of the original salary.\r\n" );
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document.write( "After the 2nd year, the salary is  1.16*1.12  of the original salary.\r\n" );
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document.write( "After the 3rd year, the salary is  1.19*1.16*1.12  of the original salary.\r\n" );
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document.write( "After the 4th year, the salary is  1.25*1.19*1.16*1.12  of the original salary.\r\n" );
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document.write( "So, after 4 years, the salary is  1.25*1.19*1.16*1.12 = 1.93256  of the original salary.\r\n" );
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document.write( "They want you to find an EQUIVALENT annual growth coefficient that provides this calculated increase of salary in four years.\r\n" );
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document.write( "For it, you should solve this equation\r\n" );
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document.write( "     = 1.93256.\r\n" );
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document.write( "It is easy to do:\r\n" );
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document.write( "    1 + r =  = 1.179  (rounded).\r\n" );
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document.write( "It gives then average annual percentage increase  r = 1.179 - 1 = 0.179,  or  17.9%.     ANSWER\r\n" );
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\n" ); document.write( "\n" ); document.write( "Solved, with my interpretation N 3.\r
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