Answer:
=B6*(1+$B$4)
Explanation:
Note: See the attached excel file for the table constructed as directed by the question.
The cell B6 for the salary in Year 1 is obtained by simply typing =A4*(1+B4) in cell B6; where,
A4 = Annual salary = $60,000
1 = 100%
B4 = Annual percentage salary increase = 2.5%
The cell B7 for the salary in Year 2 is obtained by simply typing =B6*(1+$B$4) in cell B7; where,
B6 = Salary in Year 2
$B$4 = Annual percentage salary increase in which the two dollar signs is obtained by placing the mouse cursor on B4 and then press F4 in order to lock the B4 for the rest of the years = 2.5%
Note that $B$4 allows 2.5% to be multiplied by salary in the previous years for each successive years 2 to 5.
By copying and pasting =B6*(1+$B$4), it will automatically changed to =B7*(1+$B$4), =B8*(1+$B$4), and =B9*(1+$B$4) to obtain salaries in years 3 to 5 respectively.
Therefore, the formula used in cell B7 is =B6*(1+$B$4).