Respuesta :
Answer:
Salary for the 7th year = 38,862 (Approx)
Total salary over the 7-year period = 236,060
Step-by-step explanation:
Given:
First year salary = 29,000
Growth rate in salary = 5 % = 0.05
Find:
Salary for the 7th year = ?
Total salary over the 7-year period = ?
Computation:
Salary for the 7th year :
[tex]Salary\ for\ the\ 7th\ year = 29,000(1+0.05)^6\\\\Salary\ for\ the\ 7th\ year = 38,862.77[/tex]
Salary for the 7th year = 38,862 (Approx)
Total salary over the 7-year period :
[tex]Total\ salary\ over\ the\ 7-year\ period = 29,000( 1 + 1.05 + 1.05^2 + 1.05^3+1.05^4+1.05^5+1.05^6)\\\\Total\ salary\ over\ the\ 7-year\ period = 29,000( 1 + 1.05 + 1.1025 + 1.1576+1.2155+1.2762+1.34)\\\\Total\ salary\ over\ the\ 7-year\ period = 29,000(8.14)\\\\Total\ salary\ over\ the\ 7-year\ period =236,060[/tex]
Total salary over the 7-year period = 236,060
