Question

A company offers you a job with an annual salary of $70 000 for the first year and a 5% raise every year after. Approximately how much money in total would you earn in 5 years of working there?

$386794

$87500

$89340

$367500

Answer 1

$89340

Explanation:

70,000 (1 + .05)^5

Answer 2

$386794

Explanation:

To find how much we're going to make in total after working for 5 years in the company, we can solve it by calculating for the total amount after each year.

So in the first year we get.

$70,000

To get how much we get in the 2nd year we add the extra 5%.

2nd year salary = (70000 x 0.05) + 70000

2nd year salary = 73500

Now we continue to do that until the 5th year

3rd = (73500 x 0.05) + 73500

3rd = 77175

4th = (77175 x 0.05) + 77175

4th = 81033.75

5th = (81033.75 x 0.05) + 81033.75

5th = 85085.44

Now we add them all up to get the total.

70000 + 73500 + 77175 + 81033.75 + 85085.44

We get:

$386794.19 or $386794