A worker’s present salary is N24,000 per annum. His annual increment is 10% of his basic salary. What would be his annual salary at the beginning of the third year?

A.
N28,800 
B.
N29,040 
C.
N31,200 
D.
N31,944
Correct Answer: Option B
Explanation
Present salary = N24,000.
Increment after first year = (frac{10}{100} times N24,000 = N2,400)
Salary at the beginning of second year = N(24,000 + 2,400)
= N26,400.
Increment after second year = (frac{10}{100} times N26,400 = N2,640)
Salary at the beginning of third year = N(26,400 + 2,640)
= N29,040.
(therefore) His salary at the beginning of the third year = N29,040.