Question

Justine earned 26,000 during the first year of her job at city hall. after each year she received a 3% raise. find her total earnings during the first five years on the job.

a. 138,037.53b. 1,004,704.20c. 4,020.51d. 108,774.30

Answer 1

This is a geometric progression with a1 = 26,000, n = 5 and r = 1.03

Total earnings in 5 years = 26000 . 1.03^5 - 1
------------ = 138,037.53 (answer)
1.03 - 1