If your starting salary were $40,000 and you received a 3% 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?

Round your answer to the nearest whole dollar.

Question

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Mathematics

20 January, 12:03

If your starting salary were $40,000 and you received a 3% 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?

Round your answer to the nearest whole dollar.

+5

Answers (2)

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Parker · Answer 1

T = 40000 + 40000 (1.03) + 40000 (1.03) ^2 + ... + 40000 (1.03) ^15

Multiply the above equation by 1.03 giving

1.03 (T) = 40000 (1.03) + 40000 (1.03) ^2 + 40000 (1.03) ^3 + ... + 40000 (1.03) ^15 + 40000 (1.03) ^16

Now subtract the first equation from the second to give

0.03T = 40000 (1.03) ^16 - 40000

0.03T = 40000 (1.03^16 - 1)

0.03T = 24188.26

T = 24188.26 / 0.03 = $806275.25

Sabrina Kirby · Answer 2

we are given the standard salary of $40,000 in which 3% increase is given at the end of every year. The formula that is applicable here is F = 40,000 * (1.03) ^n where n is equal to 16 in the problem. The answer to this problem is $101,614.07

If your starting salary were $40,000 and you received a 3% 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?Round your answer to the nearest whole dollar.

If your starting salary were $40,000 and you received a 3% 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?

Round your answer to the nearest whole dollar.