Question

Stu takes a job with a starting salary of $65,000 for the first year. He earns a 2% increase each year. How much does Stu make over five years?

Answer 1

Stu makes $338,263 over five years.

Answer 2

Stu make over $71,765.25 in 5 years

Explanation:

Stu takes a job with a starting salary of $65,000 for the first year. He earns a 2% increase each year

Exponential growth formula

`y=a(1+r)^t`

'a' is the initial salary= 65000

r is the rate of interest 2% = 0.02

time t= 5 years

`y=65000(1+0.02)^5`

y=71765.25220

Stu make over $71,765.25 in 5 years