Question

G aerospace contractor has four employees whose combined salaries through the end of this year are $250,000. if the contractor expect to give an average raise of 5% each year, calculate the present worth of the employees' salaries over the next 5 years. let i=12% per year

Answer 1

If the contractor is to give average raise of 5% each year over the next 5 years, it is expected that the average combined salaries of the 4 employees will amount to $319,070 (rounded off).