Question

!!!!!HELP!!!!! 25 POINTS!!!

A company is offering a job with a salary of $48,000 for the first year, then a raise of 2% each year after that. Write a formula to represent the salary after each year of employment, then determine the salary after 30 years.

Answer 1

The salary after 30 yeras will be $86,945.

Explanation:

Since the salary is raised every year by 2%, it can be modeled as a compounded growth, so we can use the compounded interest formula, but in the place of the interest rate we will use the raise rate. We have:

M = C*(1.02)^t

Where M is the final salary, C is the initial salary and t is the time elapsed. In this case the initial salary is 48000 and we want to know how much will be the salary after 30 years, so t = 30. We have:

M = 48000*(1.02)^30 = 86945

The salary after 30 yeras will be $86,945.

Answer 2

Formula: A = 48,000(1+0.02)^t

salary after 30 years: $ 86,945.35

Explanation:

Hi, to answer this question we have to apply an exponential growth function:

A = P (1 + r) t

Where:

p = initial salary

r = raising rate (decimal form)

t= years

A = salary after t years

Replacing with the values given:

A = 48,000 (1+ 2/100)^t

A = 48,000(1+0.02)^t

Salary after 30 years: substitute t=30

A = 48,000(1+0.02)^30

A = 48,000(1.02)^30

A=$ 86,945.35

Feel free to ask for more if needed or if you did not understand something.