Answer:
It will take 56 years to make $100,000
Step-by-step explanation:
We can use the expression for the future value to determine the number of years you will work to make $100,000. The expression is as shown;
FV=PV(1+r)^n
where;
FV=future value of salary
PV=present value of salary
r=annual raise in salary
n=number of years
In our case;
FV=$100,000
PV=$50,000
r=1.25%=1.25/100=0.0125
n=unknown
replacing;
100,000=50,000(1+0.0125)^n
100,000/50,000=(1+0.0125)^n
2=1.0125^n
ln 2=ln 1.0125^n
ln 2=n ln 1.0125
n=ln 2/ln 1.0125
n=55.7976 rounded up=56
It will take 56 years to make $100,000
