Question 248915: Mr. Goyal receives a 10% raise every year. His salary after four such raises
has gone up by what percent ?
(A) less than 10% (B) 40% (C) 44% (D) more than 45%
Found 2 solutions by Theo, stanbon:
Answer by Theo(13342)   (Show Source):
You can put this solution on YOUR website! (1.10)^4 = 1.4641
His salary has gone up 46.41% which is more than 45% so your answer is selection (D).
Here's what happened.
Assume his salary was $30,000 a year.
At the end of the first year it became $30,000 * 1.10 = $33,000
At the end of the second year it became $33,000 * 1.10 = $36,300
At the end of the third year it became $36,300 * 1.10 = $39,930
At the end of the fourth year it became $39,930 * 1.10 = $43,923
$43,923 minus $30,000 is an increase of $13,923
$13,923 / $30,000 is an increase proportion of .4641 * 100% equals an increase percent of 46.41%.
This is the same as $30,000 * (1.10)^4 = $30,000 * 1.4641 = $43,923.
Answer by stanbon(75887)  (Show Source):
You can put this solution on YOUR website! Mr. Goyal receives a 10% raise every year. His salary after four such raises
has gone up by what percent ?
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Let his starting salary be "x".
Equation:
x(1.1)^4 = 1.4641x = x + 0.4641x
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Ans: 46.41%
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Cheers,
Stan H.
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