Dustin's starting salary is $40,000. His salary is expected to increase by 4% each year. Which expression can be used to calculate Dustin's salary n years from now? To the nearest dollar, what is Dustin's expected salary in 5 years?
A)
40000(1.04)(n - 1) ; $46,794.00
B)
40000(1.04)n ; $48,666.00
C)
40000(1.04)(n + 1) ; $50,613.00
D)
40000(1.04)(n - 2) ; $44,795.00

Question

Dustin's starting salary is $40,000. His salary is expected to increase by 4% each year. Which expression can be used to calculate Dustin's salary n years from now? To the nearest dollar, what is Dustin's expected salary in 5 years?
A)
40000(1.04)(n - 1) ; $46,794.00	
B)
40000(1.04)n ; $48,666.00	
C)
40000(1.04)(n + 1) ; $50,613.00	
D)
40000(1.04)(n - 2) ; $44,795.00

zyi6 · Answer

Do you understand what the question is asking at all?

zyi6 · Answer

well, this is the explanation on how to solve it.

First, we have to set up our exponential function:

f(n) = 40,000(1.04)^n

Next, we substitute 5 in for the exponent.

f(n) = 40,000(1.04)^5

Then, solve.

f(n) = 40,000(1.04)^5
f(n) = 40,000(1.2166529024)
f(n) = 48666.116096

This can be rounded to say 

f(n) = 48,666.00

So, B is your answer.

Do you understand how I did that?