Question

Kana earns a $25,000 salary in the first year of her career. Each year, she gets a 4% raise. How much does Kana earn in the first 10 year of her career? (Round the final answer to the nearest dollar)

Answer 1

The amount is $300,152.68.

Step-by-step explanation:
This can be represented as a geometric sequence, with a common ratio of 1.04. This is because she earns 100% of her previous salary plus an extra 4% each year; 104%=104/100 = 1.04.

The explicit form of the sequence would be
25000(1.04)ⁿ⁻¹,

where n is the number of years. We want the sum of the first ten years, so we want

`\Sigma_(n=1)^(10)25000(1.04)^(n-1)`

Using technology, this comes out to $300,152.68.