Question

A woman made $45,000 during the first year of her new job at city hall. Each year she received a 10% raise. Find her total earnings during the first six years on the job.

Answer 1

Equation: 45000(1+.1)^6

Answer: 79720.25

Explanation:

This is a prime example of a Compound Interest Formula based question. Due to the fact the question states that the woman is getting a raise every year, we add one rather than subtracting one. Next we convert the 10% into a decimal form into 0.1 and from there since the time is all the same we wouldn’t need to divide anything out so we raise the equation to the sixth power and our final answer is $79720.25