If 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?

Question

crashonce · Answer

the end of the first year would be 52000 etc repeat
theres a formula, using compound interest formula you can still do it sorry

anonymous · Answer

so would the total be 82000?

crashonce · Answer

dont you have to add every year on?

anonymous · Answer

Yeah..but what am i adding?

crashonce · Answer

don't you add every years income on cos it says how much have you earned in 16 years

anonymous · Answer

i don't fricken know. honestly.

crashonce · Answer

@ganeshie8  simple help please

mikurout · Answer

use the formula total amount = A = p* (1+R/!00)^n

anonymous · Answer

That doesn't help me...

mikurout · Answer

Why?
It will give you 93649.06
at the end of 16 th year.

anonymous · Answer

thank you...that's all i wanted.

anonymous · Answer

the answer was 1091227..

jack1 · Answer

50,000 + (50,000 x 1.04) + (50,000 x 1.04 x 1.04) + (50,000 x 1.04 x 1.04 x 1.04) ... etc
so look for the pattern here: what's repeating?

"50,000" is
and 1.04 is...

50,000 + (50,000 x 1.04) + (50,000 x 1.04 x 1.04) + (50,000 x 1.04 x 1.04 x 1.04) ...etc

so if you were to try to reduce this down...

(50,000 x {1.04}^0) + (50,000 x {1.04}^1) + (50,000 x {1.04}^2) + (50,000 x {1.04}^3) ...etc

reduce even further...

50,000 ( {1.04}^0 + {1.04}^1 + {1.04}^2 + {1.04}^3 ... etc up to power of 15

so now you can see the pattern, merely work out the totals for the interest, then multiply by initial salary
I got 24.1193...

so 50,000* 24.1193 = 1,205,965

jack1 · Answer

note... this is the total earned at the end of 16 years worked...