Problema Solution
Mr. Miller start working for a technology company this year. His salary the first year is $40,000. according to the company's employee handbook, each following year Mr. Miller works at the company, he is eligible for a raise equal to 4% of hi previous year's salary.
Mr. Miller calculates that after 1 year of working with this company, his new salary will be $1,600 more, which is 4% of $40,000. he begins to create a tables of what he think his new salary will be each year.
part A: According to this method , what would Mr. Miller's salary be after working with the company for 10 years?
Answer provided by our tutors
First year: 40,000
Second year: 40,000 + 0.04*40.000 = 40,000*1.04
Third year: 40,000*1.04^2
........................
Tenth year: 40,000*1.04^9
After 10 years (during the eleventh year) his salary will be 40,000*1.04^10 = $59,209.77