Question

MEDAL!!!!!!





A college graduate expect to earn a salary of 50000 during the first year after graduation and receive a 3% raise every year after that what is the total income he will have received after ten years?

A. 507,955.31
B. 573,193.97
C. 515000.00
D. 640,389.78

Answer 1

Have you considered what kind of formula applies here?

It's the same as you'd use to calculate the amount of $ that would accumulate in your bank account if you deposit P dollars on January 1 and were paid 3% interest per year for t years.

What is that formula?

What is your principal, P? Your interest rate? Your amount after ten years?

Answer 2

Have you considered what kind of formula applies here?

At first I'd thought that formula would be the same as you'd use to calculate the amount of $ that would accumulate in your bank account if you deposit P dollars on January 1 and were paid 3% interest per year for t years. But that's not right; you'd be paid your base salary every year for ten years, and every year your salary would be increased by 3%

If you were paid a straight $50,000 per year for 10 years, your total earnings would be 10($50,000), or $500,000.

But if your salary began at $50,000 and were increased by 3% each year, you'd earn a total larger than $500,000, right?

Think about this: How would you go about calculating the total amount of $ you'd have earned after 10 years if your salary for the 2nd year were 3% more than that for the first year, 3% more for the 3rd year as for the 2nd year, and so on?