In: Finance
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
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%