Question

If your starting salary is $50,000 and you receive a 4%increase at the end of every year, what is the total amount, indollars, you will earn over the first 16 years that you work?Round your answer to the nearest whole dollar, and expressyour answer without using commas.

Answer 1

Answer

Total amount earned after 16 years = $93649

Explanation:

The principal, P = $50,000

Interest rate, r = 4% = 4/100

r = 0.04

The time, t = 16 years

Number of times intesrest is compounded per year, n = 1

Total amount is calculated below:

$\begin{gathered} A=P(1+r)^t \\ \\ A=50000(1+0.04)^{16} \\ \\ A=50000(1.04)^{16} \\ \\ A=\ 93649 \end{gathered}$

Total amount earned after 16 years = $93649