Difference between revisions of "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 the next year he would have 110 dollars then the next year he would have 121 dollars then the next year he would have 133.1 dollars so therefore it is A

so the percent is smaller than $40\%$ and the only choice left is $\boxed{\text{A}}$. It is 4 raises, not 3. Thus, the correct answer is a 46.41 percent increase, or $\boxed{\text{E}}$.