Question

The equation s=p(1+r)^t can be used to model a person’s future income. S = future salary, p = current salary, r = rate of increase, and t = time in years. Susan’s salary increases by 3% each year. If she starts at $43,000 per year, what will her salary be in 5 years?

Answer 1

her salary in 5 years is given by $49848.79

Explanation:

It has been given that the equation for future's income is

`s=p(1+r)^t`

Given that,

p = current salary= $43,000

r = rate of increase = 0.03

t = time in years = 5

Substituting these values in the given equation,

`s=43000(1+0.03)^5`

On simplifying, we get

`s=49848.79`

Thus, her salary in 5 years is given by $49848.79

Answer 2

P = 43,000
r = 1.03
t = 5
s = p(1+r)^t
s = 43000(1.03)^5
s=49,850
hope it helps