Question

a hockey player signs a contract with a starting salary of $810,000 per year and an annual increase of 6.5% begining in the second year. what will the athletes salary be, to the nearest dollar, in the eighth year?

Answer 1

P = A(1+r)^(t-1)

where P is the final amount, A is the starting amount, r is the increase rate (as a decimal, not a %), and t is the # of years. it's t - 1 since the increase only starts beginning in year 2.