Question

You are offered a job that pays $50,000 during the first year, with an annual increase of 10% per year beginning in the second year. That is, beginning in year 2, your salary will be 1.1 times what it was in the previous year. What can you expect to earn in your fourth year on the job? Round your answer to the nearest dollar.

Answer 1

Given:

Initial Salary = $50000

Rate of increase = 10%

Let's find the amount you can earn in the fourth year.

To find the amount in the fourth year, apply the exponential growth formula:

`f(t)=a(b)^t`

Where:

a = 50000

b = 1.1

t is the number of years = 4

Plug in values into the equation and solve:

`\begin{gathered} f(4)=50000(1.1)^4 \\ \\ f(4)=50000(1.4641) \\ \\ f(4)=73205 \end{gathered}`

Therefore, the amount you can expect in yoyr fourth year on the job is $73205

ANSWER:

$73205