Question

Wen takes a job with a starting salary of $100,000 for the first year. she earns a 3% increase each year. what does s5 represent?

Answer 1

Starting salary of Wen = $100,000

Increment in salary every year or rate of increase = 3%

`S_(5)` is salary after 5 years.

we will use the formula of amount here, as Salary increase that is interest is compounded annually.

`A_(5)=P*[1+(R)/(100)]^5\\\\S_(5)=100000*[1+(3)/(100)]^5\\\\S_(5)=100000*(1.03)^5\\\\ S_(5)=100000*1.1592740743\\\\S_(5)=115927.40743`

So,
`S_(5)` is salary after 5 years which is equal to =$115,927.50(approx)