Question

I want to be earning an annual salary of $100,000 when i retire in 10 years. i have been offered a job that guarantees an annual salary increase of 4% per year, and the starting salary is negotiable. what is the lowest salary that i should request in order to meet my goal? (round your answer to the nearest cent.)

Answer 1

For this case we have a function of the form:

`image`

Where,

A: starting salary

b: salary growth rate

x: number of years

y: salary after x years.

Substituting values we have:

`image`

From here, we clear the value of A.

We have then:

`A=(100000)/(1.04^(10))`

`image`

Answer:

the lowest salary that i should request in order to meet my goal is:

A=67556.42