Question

You get a job as a nurse. Your salary for the first year is $74,000. You will

receive a 1.2% increase every year. If you could save your entire salary, how
much money would you have in 5 years? Round to the nearest cent (2 decimal
places). Hint: What is a₁? What is r? Then use the formula for a finite
geometric series.

Answer 1

Answer: The amount of money you would have in 5 years if you could save your entire salary with a 1.2% increase every year would be $87,357.41.

Step-by-step explanation:

The initial term, a₁, is $74,000, and the common ratio, r, is 1 + 1.2% = 1.012. To find the sum of the first 5 terms, we use the formula for a finite geometric series:

S₅ = a₁(1 - r⁶)/(1 - r)

Plugging in the values, we get:

S₅ = $74,000(1 - 1.012⁵)/(1 - 1.012) = $87,357.41 (rounded to the nearest cent)

Therefore, if you save your entire salary, you would have approximately $87,357.41 in 5 years with a 1.2% increase every year.