Salary at 5 Percent Yearly IncreaseDate: 9/11/96 at 16:49:53 From: Anonymous Subject: Salary at 5 percent Yearly Increase Dr. Math, If Martin started with a company at an annual salary of $18,000, and he gets an increase of 5 percent at the end of every year, at this growth rate, what would Martin's salary be in his 30th year with his company? I started with the formula S (sub n)=18,000(1.05)^(n-1) What do I supply for n? Also, what would be the first 3 terms of the sequence? Thank you, Emily Pawlosky Date: 9/11/96 at 18:52:50 From: Doctor Tom Subject: Re: Salary at 5 percent Yearly Increase Hi Emily, Here's how I'd approach the problem (I'll use '*' for multiplication and '^' to indicate exponentiation): In year 1, he earns 18000 In year 2, he earns 18000*1.05 In year 3, he earns 18000*(1.05)^2 In year 4, he earns 18000*(1.05)^3 and so on, so during the 30th year, he'll be earning 18000*(1.05)^29. I plugged this into my calculator, and it's $74090.44 in the 30th year. I don't know what you mean by the first 3 terms of this, unless the question was, "how much total money does he earn in all 30 years?" If that's the question, the answer is: 18000 + 18000*(1.05)^1 + 18000*(1.05)^2 + ... + 18000*(1.05)^29. -Doctor Tom, The Math Forum Check out our web site! http://mathforum.org/dr.math/ |
Search the Dr. Math Library: |
[Privacy Policy] [Terms of Use]
Ask Dr. Math^{TM}
© 1994-2015 The Math Forum
http://mathforum.org/dr.math/