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18 July, 12:43

The equation S = p (1+r) ^2 can be used to model a person's future income. S = future salary, p = current salary, r = rate of increase (% in decimal form), and t = time in years. Bob's salary increases by 5% each year. If he starts at $35,000 per year, what will his salary be in 5 years?

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  1. 18 July, 15:41
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    S = p (1 + r) ^t

    S = 35,000 (1 +.05) ^5

    S = 35,000 (1.05^5)

    S = 44669.85 rounds to 44,670
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