The average annual salary of the employees of a company in the year 2005 was $80,000. It increased by the same factor each year, and in 2006 the average annual salary was $88,000. Let y represent the average annual salary, in thousand dollars, after x years since 2005. Which of the following best represents the relationship between x and y? y = 88(0.88)x
y = 88(1.1)x
y = 80(0.88)x
y = 80(1.1)x

the answer is 200

step-by-step explanation:

the way the question is worded, it seems to imply the $264 interest is simple interest, not compound interest.

the simple interest for 2 years is $264; the simple interest for 1 year is $132.

$132 interest on a $600 investment means an interest rate of (132/600)*100 = 22%.

the value of $200 at 22% interest compounded annually for three years is

200%281.22%29%5e3

the amount of interest is that value, minus the original $200.