Question

Micah takes a job with a starting salary of $78,000 for the first year. He earns a 4% increase each year. How much does Micah make over seven years?

Answer 1

So his job has a starting salary of $78,000 and he gets a 4% increase each year. 4% of 78,000 is 3120 since 3120 divided by .04 equals 78,000, and 78,000+3120 = 81120 x 7= 567,840. So every year he can make $81120 and multiply that by 7, Mica would earn $567,840 every 7 years with the 4% increase in his salary every year.

Answer 2

Micah make 616066.97 $ over seven years

Explanation:

This increase is in the form of a geometric progression.

Micah takes a job with a starting salary of $78,000

First term of GP = $78,000

He earns a 4% increase each year

Common ratio
`=1+(4)/(100)=1.04`

Sum of n terms of GP with first term a and common ratio r.

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

How much does Micah make over seven years, so wee need to find sum of GP when n = 7.

`s_7=(78000(1.04^7-1))/(1.04-1)=616066.97\$`

Micah make 616066.97 $ over seven years