Question

If your starting salary is $40,000 and you receive a 3% increase every year , what is the total amount , in dollars , you will earn over the first 16 years that you work

Answer 1

Amount A =62318.7

Amount is the future value

Explanation:

Principal in $ P=40000

Interest per year in % i=3

Time in years n=15

Compound interest in $

A=P (1+i/100)^n

A=40000 (1+3/100)^15

A=40000 (1.03^15)

A=40000 (1.557968)

Principal P=40000

Amount I =62318.7