Question

Today you earn a salary of $28,500. What will be your annual salary fifteen years from

now if you earn annual raises of 3.5 percent?

Answer 1

$47.747.44

Step-by-step explanation:

After 14 years, the salary will be equivalent to the future value of $28,500 at 3.5% compound interest.

The formula for calculating compound interest is as follows.

FV = PV × (1+r)n

where FV = Future Value

PV = Present Value... 28,500

r = annual interest rate.... 3.5%

n = number of periods...15

Fv = $28,500 x ( 1+ 3.5/100)15

Fv = $28,500 x ( 1+0.035)15

Fv =$28,500 x 1. 67534883

Fv =$47.747.44