If your starting salary were $50,000 and you received a 4% 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?

Question

Mathematics

Iris Hart

20 January, 01:34

If your starting salary were $50,000 and you received a 4% 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?

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Raisin · Answer 1

n = 16

50000 (1 + 1.04 + 1.04^2 + 1.04^3 + ... + 1.04^15) = 50000 * (1.04^16 - 1) / (1.04 - 1) = 1,091,226.56

Final year's salary = 90047.17

86,583.82 * 1.04 = 90047.17

There are only 15 table when there should be 16.

a_N = 50000 (1.04) ^15 = 90047.17

And if we add 90047.17 to the previous total of 1001179.38 we get

$1,091,226.55