Question

25)

Jackson's current salary is $36,000 per year. Each year his salary is 1.04 times the previous yeal's salary. What
will his salary be in his 5th year?
OA) $42,214.92
OB) $42,114.91

Answer 1

$43,799.50

Explanation:

USing the formula:

A = P(1+r)ⁿ

n is the time = 5

1 + r = 1.04

P = 36,000

Substitute the values into the formula

A = 36000(1.04)⁵

A = 36,000(1.2166529024)

A = 43,799.50

Hence the value in the fifth year will e $43,799.50