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Your starting salary was $56,936 After 6 years of work, your salary is $69,808 What was...

Your starting salary was $56,936
After 6 years of work, your salary is $69,808

What was your NOMINAL per year average percentage raise?

State your answer to 2 decimal places.

Do not include the % sign.

For example, 1.57

Solutions

Expert Solution

Current Salary = $56,936

Salary after Year =  $69,808

To determine nominal per year average rise in salary, we need to calculate CAGR(compounded annual growth rate)

CAGR = ((Value at 6th year/ Value at today)^(1/Time)) - 1

= ((69,808/56,936)^(1/6)) - 1

= 1.0345 - 1

= 3.45%

Hence average salary raise per year is 3.45%

jeff jeffy answered 2 years ago
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