dustin starting salary is 40,0000. His salary is expected to increase by 4% the year. To the nearest dollar, what is dustin;s expected salary after 5 years

Question

Angle · Answer

Attached to this comment is the Compounding Interest Formula.

A is the result you are looking for
P is the "principal" or starting amount = 400000 in this problem
r is the rate = 4% = 0.04 as a decimal
n is the number of times a year = 1
t is how many years = 5 years

We plug in the above information into the formula and solve for A

Angle · Answer

$A = (400000)(1+0.04)^5=?$

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