Your starting salary at a new company is $34,000 and it increases by 2.5% each year. What will your salary be in 5 years?

1 Answer
May 21, 2016

$38467.88

Explanation:

Use this formula for compound interest:
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V is the salary is 5 years
P is the when you first joined
R is the percentage increase per year
N is the number of years

Therefore,

V= 34000xx(1+2.5%)^5

= 34000xx1.025^5

= $38467.88 (2dp)