A man joined a company as Assistant Manager. The company gave him a starting salary of ₹60,000 and agreed to increase his salary 5% annually. What will be his salary after 5 years?

A man joined a company as Assistant Manager. The company gave him a starting salary of ₹60,000 and agreed to increase his salary 5% annually. What will be his salary after 5 years?
Solution :
Starting salary   = 60,000 
Every year 5% of annual salary is increasing.
Second year salary  = 60000 + 5% of 60000
  =  60000(1 + 5%)
Third year salary  = 60000 + 5% of 60000(1 + 5%)
  =  60000(1 + 5%)(1 + 5%)
  =  60000(1 + 5%)2
By continuing in this way,  salary after 5 years is
  =  60000(1 + 5%)5
  =  60000(105/100)5
  =  60000(1.05)

  =  76577

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