102k views
4 votes
Suppose a doctor earns $40,000 during the first year of practice. suppose also that each succeeding year the salary increases 10%. what is the total of the doctor's salaries over the first 10 years?

User Jammo
by
8.7k points

2 Answers

7 votes

Final answer:

The total of the doctor's salaries over the first 10 years is $637,600.

Step-by-step explanation:

To find the total of the doctor's salaries over the first 10 years, we can use the formula for compound interest. The doctor's salary increases by 10% each year, so we can think of it as a compounded interest problem. Starting with a salary of $40,000, we can calculate the salary for each year by multiplying the previous year's salary by 1.10. So, the salary for the second year would be $40,000 * 1.10, the salary for the third year would be $40,000 * 1.10 * 1.10, and so on.

This can be simplified using the geometric series formula: salary = first term * (1 - common ratio ^ number of terms) / (1 - common ratio). In this case, the first term is $40,000, the common ratio is 1.10, and the number of terms is 10.

Substituting these values into the formula, we get:

salary = $40,000 * (1 - 1.10^10) / (1 - 1.10) = $40,000 * (1 - 2.5940) / (-0.10) = $40,000 * (-1.5940) / (-0.10) = $40,000 * 15.940 = $637,600.

User Maarten Boekhold
by
8.4k points
2 votes
$94,427.89 , best of luck
User Malek Hijazi
by
7.7k points
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

9.4m questions

12.2m answers

Categories