Question

Someone receives a raise of $4,600 each year. After working 3 years she is making $93,000 per year. Write an equation in point slope form which models her income in terms of how many years she has worked at the company.

Answer 1

Use the Compounded interest = P (1 + r/n) (n*t) – P

A = The future value of the investment, including the compounded interest

P = The principal (initial) investment

r = The interest rate

n = The compounding frequency (ex. monthly = 12)

t = The number of years the money is invested

The Compound Interest Formula will return the future value of the investment, which is simply the sum of the principal and the compounded interest.