1985 AJHSME Problems/Problem 21

Problem

Mr. Green receives a $10\%$ raise every year. His salary after four such raises has gone up by what percent?

$\text{(A)}\ \text{less than }40\% \qquad \text{(B)}\ 40\% \qquad \text{(C)}\ 44\% \qquad \text{(D)}\ 45\% \qquad \text{(E)}\ \text{more than }45\%$

Solution

Assume his salary is $100$ dollars. Then in the next year, he would have $110 dollars$ , and in the next he would have $121$ dollars. The next year he would have $133.1$ dollars and in the last year, he would have $146.41$ . As the total increase is greater than $45\%$ , the answer is $\boxed{\text{E}}$

Note that we could have generalized this for any integer $n$ .

1985 AJHSME (Problems • Answer Key • Resources)
Preceded by Problem 20	Followed by Problem 22
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1985 AJHSME Problems/Problem 21

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