Question

Suppose that you have just been hired at an annual salary of $85,000 and expect to receive an annual raise of 6% per year. What

will be the total amount of money you will have earned after 8 years?

Answer 1

$125,800

Explanation:

Amount (A) = ?

Principal (P) = $85,000

Rate (r) = 6%

Time (t) = 8 years

Simple interest formula;

A = P(1 + rt)

A = $85,000(1 + 0.48)

A = $125,800