Question

You just started a great part-time job that you want to keep for a while. Under the current contract, your annual salary is $31,000. Every year you're promised raises of 2.2 percent per year. Calculate your annual salary ten years from today.

Answer 1

Answer:

$38,536.3567

Explanation:

Given that,

Annual salary = $31,000

Growth rate = 2.2 percent per year

Time period = 10 years

Salary 10 years from today:

= Current salary × (1 + Growth rate)^{Period}

= $31,000 × (1 + 0.022)^{10}

= $31,000 × 1.24310828

= $38,536.3567

Therefore, the annual salary of this person ten years from today is $38,536.3567.