Question

f your starting salary were $50,000 and you received a 4% increase at the end of every year for 15 years, what would be the total amount, in dollars, you would have earned over the first 16 years that you worked?

Answer 1

@ganeshie8

Answer 2

geometric series

Answer 3

start by finding out below :
first term, \(a\) = ?
common ratio, \(r\) = ?

Answer 4

a=50000, r=1.04?

Answer 5

excellent !

so the series is :

50000 + 50000(1.04) + 50000(1.04)^2 + ... 16 terms, eh ?

Answer 6

use the partial sum of geometric series formula :
http://www.regentsprep.org/Regents/math/algtrig/ATP2/ArithG12.gif

Answer 7

=1,001,179.38?

Answer 8

http://www.wolframalpha.com/input/?i=50000%281-1.04%5E16%29%2F%281-1.04%29

Answer 9

i'm lost

Answer 10

Plug the numbers into the geometric sum formula.

\(\Large a + ar + ar^2 + .... + ar^{n-1} = a\frac{1-r^n}{1-r}\)
a = 50,000
r = 1.04
n = 16
Sum = \(\Large 50,000\frac{1-1.04^{16}}{1-1.04}\) = ?

Answer 11

$1,091,225.56?

Answer 12

@aum

Answer 13

They want only the dollar portion and it comes to $1,091,227. Yours if off by a $1 because it depends on how many decimal places you did the numerator and the denominator in the above formula.

Answer 14

It also asks to round your answer to the nearest whole dollar, and express your answer without using commas? So what would be the amount they want?

Answer 15

1091227

Answer 16

Thank you so much!

Answer 17

You are welcome.