The survey results from the National Association of Colleges and Employers (NACE)show the average annual increases in salaries for new accounting graduates to be 3.42% since the year 2000.If new starting salaries in accounting were $36,919 in 2000,what were they in 2011?
A)$45,757
B)$46,718
C)$53,444
D)$42,617

Question

Quizplus · Accepted Answer

To calculate the starting salaries in accounting for 2011, we need to use the formula:
Salary in 2011 = Salary in 2000 x (1 + annual increase)^number of years
Plugging in the values given, we get:
Salary in 2011 = $36,919 x (1 + 0.0342)^11
Salary in 2011 = $53,444.37
Therefore, the best choice is C.

The Survey Results from the National Association of Colleges and Employers