Question

I want to be earning an annual salary of $100,000 when i retire in 10 years. i have been offered a job that guarantees an annual salary increase of 4% per year, and the starting salary is negotiable. what is the lowest salary that i should request in order to meet my goal? (round your answer to the nearest cent.)

Answer 1

For this case we have a function of the form:

$y = A * (b) ^ x$

Where,

A: starting salary

b: salary growth rate

x: number of years

y: salary after x years.

Substituting values we have:

$100000 = A * (1.04) ^ {10}$

From here, we clear the value of A.

We have then:

$A=\frac{100000}{1.04^{10}}$

$A=67556.42$

Answer:

the lowest salary that i should request in order to meet my goal is:

A=67556.42