Question

Als starting Salary at her new job is $41,300. It is expected to increase by 3% each

year what will Alis Salary be in to years?
A
$569356
b
$30,455
C
$47,000
d
$55,503

Answer 1

$1,379.17

Explanation:

Use the compound amount formula:

A = P(1 + r)^t, where r is the intererest rate as a decimal fraction.

Here A = ($1,300)(1 + 0.03)^2

= ($1,300)(1.03)^2 = $1,379.17