Question

If your starting salary is $50,000 and you receive a 4% increase at the end of every year, what is the total amount, in dollars, you will earn over the first 16 years that you work?

Answer 1

To calculate the total amount earned over the first 16 years with a starting salary of $50,000 and a 4% increase each year, use the formula for compound interest.

Step-by-step explanation:

To calculate the total amount you will earn over the first 16 years that you work, you can use the formula for compound interest:

Starting Salary + (Starting Salary * Growth Rate) + (Starting Salary * Growth Rate^2) + ... + (Starting Salary * Growth Rate^16)

For this question, the Growth Rate is given as 4% (0.04 in decimal form). So the calculation would be:

$50,000 + ($50,000 * 0.04) + ($50,000 * 0.04^2) + ... + ($50,000 * 0.04^16)

By plugging in the values and simplifying the expression, the total amount you will earn over the first 16 years is approximately $980,937.

Answer 2

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Well to get this answer you do 50000 x 1.04 x 16 - 50000 and your answer is
782000
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