Question

Suppose that you have been hired at annual salary of $24000 and expert to receive annual increases of 5%. What will your salary be when you being your ninth year?

Answer 1

$37231.88

Explanation:

Here money will be compounded yearly. Initial salary (P) = 24,000,
annual increase (R) = 5% and No. of years (N) = 9.

So, Amount will be

`rArr P.(1+R/100)^N`

`rArr 24,000.(1+5/100)^9`

`rArr 24,000.(21/20)^9`

`rArr 37231.88`