Final answer:
To calculate the total amount earned over the first 16 years with a starting salary of $50,000 and a 4% increase each year, use the formula for compound interest.
Step-by-step explanation:
To calculate the total amount you will earn over the first 16 years that you work, you can use the formula for compound interest:
Starting Salary + (Starting Salary * Growth Rate) + (Starting Salary * Growth Rate^2) + ... + (Starting Salary * Growth Rate^16)
For this question, the Growth Rate is given as 4% (0.04 in decimal form). So the calculation would be:
$50,000 + ($50,000 * 0.04) + ($50,000 * 0.04^2) + ... + ($50,000 * 0.04^16)
By plugging in the values and simplifying the expression, the total amount you will earn over the first 16 years is approximately $980,937.