Question

The average annual salary for a teacher nationally is $58,353. This is projected to increase 2% per year for the next 4 years. What will your projected annual salary be in four years?

Answer 1

Answer:

$\ 63,163.16$

Step-by-step explanation:

we know that

The equation of a exponential growth function is equal to

$y=a(1+r)^x$

where

y is the average annual salary

x is the number of years

r is the rate of change

a is the initial value

In this problem we have

$a=58,353\\r=2\%=2/100=0.02$

substitute

$y=58,353(1+0.02)^x$

$y=58,353(1.02)^x$

For x=4 years

$y=58,353(1.02)^4=\ 63,163.16$