Question

Kayden was offered a job that paid a salary of $39, 500 in its first year. The salary

was set to increase by 2% per year every year. If Kayden worked at the job for 9 years,
what was the total amount of money earned over the 9 years, to the nearest whole
number?

Answer 1

FV= $385,307.82

Explanation:

Giving the following formula:

Annual salary (A)= $39,500

Growth rate (g)= 2% annual

Number of years (n)= 9 years

To calculate the total amount earned over 9 years, we need to use the following formula:

FV= {A*[(1+g)^n-1]}/g

A= annual deposit

FV= {39,500*[(1.02^9) - 1]} / 0.02

FV= $385,307.82