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1 February, 13:52

You can model that you expect a 1.25% raise each year that you work for certain company. If you currently make $50,000 how many years ago by until you're making $100,000?

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  1. 1 February, 13:59
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    It will take 56 years to make $100,000

    Step-by-step explanation:

    We can use the expression for the future value to determine the number of years you will work to make $100,000. The expression is as shown;

    FV=PV (1+r) ^n

    where;

    FV=future value of salary

    PV=present value of salary

    r=annual raise in salary

    n=number of years

    In our case;

    FV=$100,000

    PV=$50,000

    r=1.25%=1.25/100=0.0125

    n=unknown

    replacing;

    100,000=50,000 (1+0.0125) ^n

    100,000/50,000 = (1+0.0125) ^n

    2=1.0125^n

    ln 2=ln 1.0125^n

    ln 2=n ln 1.0125

    n=ln 2/ln 1.0125

    n=55.7976 rounded up=56

    It will take 56 years to make $100,000
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