If your starting salary were $50,000 and you received a 4% increase at the end of every year for 15 years, what would be the total amount, in dollars, you would have earned over the first 16 years that you worked?

Answer-

The total amount you would have earned over the first 16 years is $90047.20

Solution-

The exponential function that would given the growth is,

Where,

P' = Future value,

P = Current value = $50000

r = rate of change = 4% = 0.04

t = time = 15 year (not 16 because the the increment occurs at year end and we want to get the value at the beginning of 16th year)

Putting the values,

Therefore, the total amount you would have earned over the first 16 years is $90047.20

step-by-step explanation:

we are given

since, we have to isolate x on anyone side

so, we can move all x terms on one side

subtract both sides by 2x

add both sides by 9

divide both sides by 4

we get