Question

Claire has a starting salary of €20,000 and gets a 5% increase per year. How much will she be earning in her 10th year in the job? How much in total will she earn in the first 10 years she works for this firm?

Answer 1

$264135.75

Explanation:

Here is what I did.

Geometric Explicit formula: f(n) = f(1)*r^n-1.

20,000*1.05^10 + 20,000*1.05^9 + 20,000*1.05^8 + 20,000*1.05^7

+ 20,000*1.05^6 + 20,000*1.05^5 + 20,000*1.05^4 + 20,000*1.05^3

+ 20,000*1.05^2 + 20,000*1.05

= $264135.75.