Question

If your starting salary is 40,000 and you receive a 3% increase at the end of every year, what is the total amount, in dollars, you will receive over the first 16 years that you work?

Answer 1

Correct answer is $806275

Explanation:

Answer 2

`\bf \qquad \textit{Amount for Exponential Growth}\\\\ A=I(1 + r)^t\qquad \begin{cases} A=\textit{accumulated amount}\\ I=\textit{initial amount}\to &40,000\\ r=rate\to 3\%\to (3)/(100)\to &0.03\\ t=\textit{elapsed time}\to &16\\ \end{cases} \\\\\\ A=40000(1+0.03)^(16)\implies A=40000(1.03)^(16)`