Question 248915
(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.