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ankoles [38]
4 years ago
13

a company is offering a job with a salary of $30,000 for the first year and a 5% raise each year after that. if the 5% raise con

tinues every year, find the amount of money you would earn in a 40-year career

Mathematics
1 answer:
Ber [7]4 years ago
8 0
<span>First year is 30,000.
</span><span>Earn 5% raise every year.
</span>Growth factor is 1.05 this sounds a lot like a geometric ratio.

An = A1 × r^(n-1)Sn = A1 × (1 - r^n) / (1-r)<span>n = 40
A1 = 30,000
A40 = $30,000 * 1.05^39 = $201,142.53

S40 = A1 * (1 - 1.05^40) / (1-1.05) which becomes:
S40 = 30,000 * -6.039988712 / -.05 which becomes: 
</span>S40 = -181,199.6614 / -.05 which becomes:
S40 = $3,623,993.227

<span>The individual yearly calculations are shown below: </span>

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