If your starting salary is $40000 and you receive a 3% increase at the end of every year, what is the total amount, in dollars, you will earn one the first 16 years that you wor…

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asked Oct 23, 2021 41.2k views

2 Answers

Cphlewis · Answer 1 · 2021-10-27T12:02:04+0000

Answer:

Total amount in dollars= $64614.00

Explanation:

Initial starting salary is $40000.

Rate of increase is 3%

Number of years is 16 years

The salary is compounded yearly.

Amount A after 16 years is given as

A= p (1+r/n)^ (nt)

A=40000(1+0.03/16)^(16*16)

A= 40000(1.001875)^(256)

A=40000(1.61534824)

A= 64613.92959

Total amount in dollars= $64614.00