Question

If your starting salary is $40,000 and you receive a 3% increase at the end of every year, what is the total amount, in dollars, you will earn over the first 16 years that you work?

Answer 1

Answer:

If my starting salary is $40,000 and I receive a 3% increase at the end of every year, after 16 years of work, I will earn $64,188.25.

Step-by-step explanation:

Starting salary: $40,000

Year 1: $40,000 x 1.03 = $41,200

Year 2: $41,200 x 1.03 = $42,436

Year 3: $42,436 x 1.03 = $43,709.08

Year 4: $43,709.08 x 1.03 = $45,020.35

Year 5: $45,020.35 x 1.03 = $46,370.96

Year 6: $46,370.96 x 1.03 = $47,762.09

Year 7: $47,762.09 x 1.03 = $49,194.95

Year 8: $49,194.95 x 1.03 = $50,670.80

Year 9: $50,670.80 x 1.03 = $52,190.92

Year 10: $52,190.92 x 1.03 = $53,756.65

Year 11: $53,756.65 x 1.03 = $55,369.35

Year 12: $55,369.35 x 1.03 = $57,030.43

Year 13: $57,030.43 x 1.03 = $58,741.34

Year 14: $58,741.34 x 1.03 = $60,503.58

Year 15: $60,503.58 x 1.03 = $62,318.69

Year 16: $62,318.69 x 1.03 = $64,188.25

Answer 2

the equation would be 40000 x (1+.03)^16 = $64,188.26

 This is how much you will earn per year after 16 years.

 If you want to know the total over the 16 years ( that's the way your question is written) you would have to do that formula for all 16 years and add them all ( $870,463.50)