Question

Jake earns $38,000 in his first year of working and earns a 2.5% increase in each successive year. Find Jakes total earnings for his first 12 years of working, to the nearest cent.

Answer 1

$524,231.01

Explanation:

use geometric series formula:

`S_n=(a(1-r^n))/(1-r)`

where
`a` is the the first term in the sequence and
`r` is the common ratio

Therefore,
`a=38000` and
`r=1.025`

`S_(12) =(38000(1-1.025^(12)))/(1-1.025) =524 231.01`