Problema Solution

You have started a job that pays a salary of $21,500. At the end of each year of work, you will get a 5% salary increase. What will your salary be after getting your fifth salary?

Answer provided by our tutors

start salary: $21,500


after the first year: 21,500 + 0.05*21,500 = 1.05*21,500


after the second year: 1.05*21,500 + 0.05*1.05*21,500 = (1.05^2)*21,500


after the third year: (1.05^3)*21,500


after the forth year: (1.05^4)*21,500


after the fifth year: (1.05^5)*21,500 = $27,440.0535