Question

You are offered a job that pays $31 comma 00031,000 during the first year, with an annual increase of 55% per year beginning in the second year. That is, beginning in year 2, your salary will be 1.051.05 times what it was in the previous year. What can you expect to earn in your fourth year on the job? Round your answer to the nearest dollar.

Answer 1

`\approx\$115,000`

Explanation:

If your salary will receive an annual increase of 55% yearly, then each year your wage will be 1.55 times higher on the 2nd year. And it raises each year at this rate since it's a 55% increase each period.

So from the 2nd salary on there will be increasing in Geometric Sequence for the increase is over the last year increase.

`S_(4) =31,000(1.55)^(4-1)=115440.13\approx115,000`