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Olin [163]
3 years ago
11

The Lynx star middle linebacker, Nat, is paid $500,000. He is guaranteed a 25% raise for each of the next three years. What will

his salary be three years from now? (Hint: Each 25% raise is based on the salary of the preceeding year.)
Mathematics
1 answer:
shutvik [7]3 years ago
3 0

Answer:

Nat's salary after 3 years = 976562.5 $

Explanation:

Salary of Nat =  $500,000

Raise in salary for next three years = 25 % = 0.25

Salary of Nat after 1 year = 500,000 + 0.25 * 500,000 = 625000 $

Salary of Nat after 2 years = 625000 + 0.25 * 625000 = 781250 $

Salary of Nat after 3 years = 781250 + 0.25 * 781250 = 976562.5 $

So, Nat's salary after 3 years = 976562.5 $

Easy Method;

   No of years considering = 3

   Initial salary = $500,000

   Rate of increase = 0.25

   Final salary = 500,000(1+0.25)^3=976562.5$

Nat's salary after 3 years = 976562.5 $

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