Question

Compound interest A computer operator is paid £10 000 a year. Assuming her pay is increased by 7% each year, what will her salary be in four years time?

Answer 1

Given

Principal = £10 000

Rate = 7%

Time = 4 years

Find

what will her salary be in four years time?

Step-by-step explanation

Amount is given by

`A=P(1+(r)/(100))^t`

substitute the values,

`\begin{gathered} A=10,000(1+(7)/(100))^4 \\ \\ A=10,000(1.07)^4 \\ \\ A=13107.96 \end{gathered}`

Final Answer

Hence , her salary after 4 years will be £13107.96