Question

Thomas earned $17,000 last year for his part time job. He expects to earn 4% more each year. How much money will Thomas have earned after 5 years of working his part time job? (total)

Answer 1

Total earning of Thomas after 5 years is $92077.45

Explanation:

Given:

Principal, P = $17000

Rate of Interest, r = 4%

Time, t = 5 years

Interest, I = ?

We know,

Earning in 1st year = $17,000

Earning in second year =  $17000 + \frac{4}{100} X 17000$

                                       = $17680

Earning in 3rd year = $17680 + \frac{4}{100} X 17680$

                                = $18387.2

Earning in 4th year = $18387.2 + \frac{4}{100} X 18387.2$

                                = $19122.69

Earning in 5th year = $19122.688 + \frac{4}{100} X 19122.688$

                                = $19887.56

Thus,

Total earning = $17,000 + $17680 + $18387.2 + $19122.69 + $19887.56

                       = $92077.45

Therefore, total earning of Thomas after 5 years is $92077.45