If your starting salary is $40,000 and you receive a 3% increase every year, what is the total amount, in dollars, you will earn over the first 16 years that you work

Question

Mathematics

Salma Navarro

17 March, 04:27

If your starting salary is $40,000 and you receive a 3% increase every year, what is the total amount, in dollars, you will earn over the first 16 years that you work

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Answers (1)

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Kasen Adkins · Answer 1

Amount A = 62318.7

Amount is the future value

Step-by-step explanation:

Principal in $ P=40000

Interest per year in % i=3

Time in years n=15

Compound interest in $

A=P (1+i/100) ^n

A=40000 (1+3/100) ^15

A=40000 (1.03^15)

A=40000 (1.557968)

Principal P=40000

Amount I = 62318.7