Question

During a job interview, Pam Thompson is offered a salary of $32,000. The company gives annual raises a 4%. What will be Pam’s salary during her fifth year on the job? (Round time value factor to three decimal places and final answer to the nearest whole number.)

Answer 1

We will have the following:

First, we construct the equation that describes the scenario:

`P(x)=32000(1+0.04)^x`

Now, we will determine her salary at the 5th year at her job:

`P(x)=32000(1+0.04)^5\Rightarrow P(5)=38932.89288`
`\Rightarrow P(5)\approx38932.893`

So, her salary after 5 years would be approximately $38933.