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17 January, 10:22

If your starting salary were 35000 and you received a 6% increase at the end of every year, what is the total amount, in dollars, you will earn over the first 16 years that you work?

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  1. 17 January, 10:51
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    A=P (1+r) ⁿ, where P = the initial amount, r = rate of change in %, n = number of years and A = The new amount:

    A = 35,000 (1+6%) ¹⁶ = 35,000 (1+0.06) ¹⁶ = 35,000 (1.06) ¹⁶ = $88,912.31 at the end of the 16th year
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