Question

As part of the performance bonus in a certain company, an employee will earn a 1 % increase every month. Ricka earns P 20 000 every month. How much will she earn after a year?

Answer 1

FV= $22,536.5

Explanation:

Giving the following information:

Growth rate (i)= 1% monthly

Present value (PV)= $20,000

Number of periods= 12 months

To calculate how much will the employee earn after a year, we need to use the following formula:

FV= PV*(1+i)^n

FV= 20,000*1.01^12

FV= $22,536.5