Question

After finishing her management degree, Jenny started a job with a fixed percentage for an annual raise. Jenny’s annual salary is modeled by the equation A = 100,000(1.065)t where t represents the years she’s been working for the company. Her friend Donald graduated from the same college and started a different job. His annual salary is modeled by the equation A = 85,000(1.07)t. After five years, Jenny has an annual salary of $, and the difference of Donald’s and Jenny’s salaries is $.

Answer 1

After five years, Jenny has an annual salary of $137,008.67

the difference of Donald’s and Jenny’s salaries is $17,791.77

Explanation:

Jenny's annual salary =
`A = 100000(1.065)^t`

Donald's annual salary =
`A=85000(1.07)^t`

We need to find out annual salary for Jenny after 5 years

Here 't' represents the number of years

So we plug in 5 for t and find out A

Jenny's annual salary =
`A = 100000(1.065)^t`

`A = 100000(1.065)^5=137008.6663415625= 137008.67`

After five years, Jenny has an annual salary of $137,008.67

Now we find annual salary for Donald after 5 years

So we plug in 5 for t and find out A

Donald annual salary =
`A = 85000(1.07)^t`

`A = 85000(1.07)^5=119216.8971095= 119216.90`

To find the difference of Donald and Jenny salary we subtract

Jenny's salary - Donald's salary after 5 years

137,008.67 - 119,216.90= 17791.77

the difference of Donald’s and Jenny’s salaries is $17,791.77