Question

Give a formula for your yearly salary as a function of time (t) in years if you are given a base salary of $40,000 and a 2.5% raise per year

Answer 1

any idea?

Answer 2

Well, my original idea was that it would be like an interest equation and the amount added to the salary each year could be calculated by doing 40,000* 0.025*T

Answer 3

good idea, but do you know the formula for compound interest?

Answer 4

S= P (1+r/t)^t correct?

Answer 5

I would use
S= P(1+i)^t in this case, where r is a yearly rate, and things are compounded every year.

Answer 6

so
S= 40000*1.025^t
where t is in years

Answer 7

Thanks for the help! That is the same equation that I get using S= P (1+r/t)^t