Question

Michael was offered a job that paid a salary of $36,500 in its first year. The salary was set to increase by 4% per year every year. If Michael worked at the job for 12 years, what was the total amount of money earned over the 12 years, to the nearest whole number?

Answer 1

$58438

Explanation:

36500×
`1.04^(12)` = 58437.67598

nearest whole number = $58438

Answer 2

548442

Explanation:

a1 = 36500

a2 = 36500(1+0.04) = 37960

a3 = 37960(1+0.04) = 39478.4

Common ratio: 1+0.04 = 1.04

Sn =
`(a1-a1r^n)/(1-r)` =
`(36500-36500(1.04)^12)/(1-1.04)` =
`(-21937.67598)/(-0.04)` = 548441.8995

≈ 548,442