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?

1 Answer
Oct 14, 2017

$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#