Question

Colton was offered a job that paid a salary of $95,000$95,000 in its first year. The salary was set to increase by 2% per year every year. If Colton worked at the job for 26 years, what was the total amount of money earned over the 26 years, to the nearest whole number?

Answer 1

The total amount of money earned over 26 years with increasing salary of 2% per year is approximately $2,781,437.

Step-by-step explanation:

Colton was offered a job with a starting salary of $95,000. The salary increased by 2% per year. To find the total amount earned over 26 years, we can use the formula for the sum of an arithmetic series:

Total earnings = (First term) * [(1 - (common ratio)^n) / (1 - (common ratio))]

Here, the first term is $95,000, the common ratio is 1 + 2% = 1.02, and n is 26.

Plugging in these values, we have: Total earnings = $95,000 * [(1 - (1.02)^26) / (1 - 1.02)]

Simplifying and rounding to the nearest whole number, the total amount earned over the 26 years is approximately $**2,781,437**.