A woman made $35,000 during the first year of her new job at city hall. Each year she received a 10% raise. How do you find her total earnings during the first eight years on the job?

1 Answer
May 2, 2016

Answer:

Total earnings after 8 years = $400,256.08

Explanation:

Her salary which increases every year forms a geometric sequence.

35,000 ; 38,500 ; 42,350 .......

The common ratio is 1.1. (this can be found by dividing #(T_3)/(T_2)#)

or by realising that adding 10% onto 100% is the same as multiplying by #110/100# which is the same as 1.1.

We are asked for her total earnings over 8 years. This now represents a geometric series:

35,000 + 38,500 + 42,350 + .......

There is a formula for the sum of the terms: #S_n = (a(r^n-1))/(r-1)#

#S_8 = (35000(1.1^8 -1))/(1.1-1)# = $400,256.08