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andriy [413]
3 years ago
7

Suppose you begin a job with an annual salary of $32,900. Each year you are assured of a 5.5% raise. What its the total amount t

hat you can earn in 15 years? A) $34,815 B) $51,751 C) $737,245 D) $1,682,920
Mathematics
1 answer:
olga2289 [7]3 years ago
4 0

Answer: the total amount that you can earn in 15 years is $737245. Option C

Step-by-step explanation:

You receive an annual salary of $32,900 and each year, you are assured of a 5.5% raise. Assuming there was no raise, you get 100% of your previous salary each year. With a raise of 5.5%, you will get 100 + 5.5 = 105.5% of your previous salary for each year. This is a geometric progression and we want to determine the sum of 15 terms(15 years).

The formula for the sum of terms in a geometric progression is

Sn = [a(r^n - 1)]/ r - 1

Sn = sum of n terms

a = the first term

n = number of terms

r = common ratio

From the information given,

a = 32900

n = 15

r = 105.5/100 = 1.055

S15 = [32900(1.055^15 - 1)] / 1.055 - 1

S15 = [32900(2.23247649 - 1)] / 0.055

S15 = 32900 × 1.23247649) / 0.055

S15 = 737245.0277

S15 = $737245

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