Question

Wen takes a job with a starting salary of $100,000 for the first year. she earns a 3% increase each year. what does s5 represent?

Answer 1

$S_{n} = \frac{ a_{1}(1- r^{n}) }{1-r}$ $a_{1} = 100000, r=1.03, n=5$
$S_{5} = \frac{100000(1- 1.03^{5}) }{1-1.03} = \frac{100000(-.159)}{-.03} =530,000$

So after 5 years she is making $530,000.

Hope that helps

Answer 2

Answer:

Starting salary of Wen = $100,000

Increment in salary every year or rate of increase = 3%

$S_{5}$ is salary after 5 years.

we will use the formula of amount here, as Salary increase that is interest is compounded annually.

$A_{5}=P*[1+\frac{R}{100}]^5\\\\S_{5}=100000*[1+\frac{3}{100}]^5\\\\S_{5}=100000*(1.03)^5\\\\ S_{5}=100000*1.1592740743\\\\S_{5}=115927.40743$

So, $S_{5}$ is salary after 5 years which is equal to =$115,927.50(approx)