Question

Mary worked for a certain company for 4 years. at the end of each year, her salary was raised by 10%. if her starting salary was $30,000 per year, what was her salary after the fourth raise?

Answer 1

A = $42,000.00

(I = A - P = $12,000.00)

Equation:
A = P(1 + rt)
Calculation:
First, converting R percent to r a decimal
r = R/100 = 10%/100 = 0.1 per year.

Solving our equation:
A = 30000(1 + (0.1 × 4)) = 42000
A = $42,000.00