Question

London was offered a job that paid a salary of \$93,000$93,000 in its first year. The salary was set to increase by 2% per year every year. If London worked at the job for 22 years, what was the total amount of money earned over the 22 years, to the nearest whole number?

Answer 1

Answer: The total amount earned over the 22 year period would be $143,776

Step-by-step explanation: What the question simply requires is the value of the current amount (93000) at an annual increment of 2% (or 0.02) for a given number of years (22).

The formula for determining the amount is given as follows;

A = P(1 + r)∧t

Where A is the amount after the given period, P is the initial amount currently (93000), r is the rate of increase per annum (0.02) and t is the period in years (22). The formula now becomes;

A = 93000(1 + 0.02)²²

A = 93000(1.02)²²

A = 93000 x 1.54597967

A = 143776.10931

A ≈ 143776 (to the nearest whole number)

The total amount earned over the 22 year period would be $143,776

Answer 2

Answer: Amount = $143776

Step-by-step explanation:

Given that London was offered a job that paid a salary of $93,000 in its first year. The salary was set to increase by 2% per year every year.

Let P = 93000

Rate R = 2%

The amount of salary he will receive after 22 years can be calculated by using exponential equation

A = P(1 + 2%)^t

Where t = 22 years

A = 93000(1.02)^22

A = 93000 × 1.545979

A = 143776.11 dollars