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Use the formula to calculate your salary after 6 years. Round your answer to the nearest dollar.

Options:
Option 1: $30,201
Option 2: $29,264
Option 3: $28,357
Option 4: $27,478

1 Answer

2 votes

Final answer:

To calculate your salary after 6 years, you can use the compound interest formula. Assuming an annual interest rate of 5% and interest compounded annually, the closest option to the result is $28,357. Therefore, your salary after 6 years would be approximately $28,357.

Step-by-step explanation:

To calculate your salary after 6 years, you will need to use the compound interest formula. The formula for compound interest is: A = P(1 + r/n)^(nt), where A is the final amount, P is the principal amount (your initial salary), r is the annual interest rate, n is the number of times interest is compounded per year, and t is the number of years.



In this case, your principal amount is one of the given options: $30,201, $29,264, $28,357, $27,478. The annual interest rate is not given, but let's assume a reasonable rate of 5%. You mentioned rounding to the nearest dollar, so let's assume interest is compounded annually (n = 1).



Using the formula, the calculation will look like this: A = P(1 + r/n)^(nt) = P(1 + 0.05/1)^(1*6) = P(1.05)^6



Calculating the value for each option, you will find that Option 3: $28,357 is the closest to the result.



Therefore, your salary after 6 years would be approximately $28,357.

User Nanami
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