A worker’s present salary is N24,000 per annum. His annual increment is 10% of his basic salary. What would be his annual salary at the beginning of the third year?
- N28,800
-
N29,040
- N31,200
- N31,944
The correct answer is: B
Explanation
Present salary = N24,000.
Increment after first year = \(\frac{10}{100} \times N24,000 = N2,400\)
Salary at the beginning of second year = N(24,000 + 2,400)
= N26,400.
Increment after second year = \(\frac{10}{100} \times N26,400 = N2,640\)
Salary at the beginning of third year = N(26,400 + 2,640)
= N29,040.
\(\therefore\) His salary at the beginning of the third year = N29,040.