Question

Mr. Claw received a job with an annual salary of $51,000. He will receive a 1.5% increase every year. How much will Mr. Claw's salary be in 3 years?

Answer 1

Answer: $53,330

Explanation:

This is an exponential function so to find the salary in 3 years, you need to use a future value formula such as :

= Amount * ( 1 + rate) ^ number of years

Amount = $51,000

Rate = 1.5%

Number of years = 3 years

Salary = 51,000 * ( 1 + 1.5%)³

= 53,329.59

= $53,330