Question

You can model that you expect a 1.25% raise each year that you work for certain company. If you currently make $50,000 how many years ago by until you're making $100,000 ?

Answer 1

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