Answer:
Step-by-step explanation:
Alexa earns $33,000 in her first year of teaching and earns a 4% increase in each successive year. This means that for each year, her income is 104% of the previous year. So the rate of increase is 104/100 = 1.04. This rate is in geometric progression. The formula for the sum of n terms of a geometric sequence is expressed as
Sn = a(r^n - 1)/r-1
Where
Sn is the nth term
a is the first term
n is the number of terms.
r is the rate or common ratio
From the information given,
a = 33000
r = 1.04
The formula for Alexis total earning over n years will be
Sn = 33000(1.04^n - 1)/(1.04 - 1)
Her earnings for the next 15 years would be
S15 = 33000(1.04^15 - 1)/(1.04 - 1)
S15 = 33000(0.8009) / 0.04
S15 = $668167.50
