SOLUTION: An employee starts work on 1 January 2000 on an annual salary of $30,000. His pay scale will give him an increase of $800 per annum on the first of January until 1 January 2015

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Question 1203113: An employee starts work on 1 January 2000 on an annual salary
of $30,000. His pay scale will give him an increase of $800 per
annum on the first of January until 1 January 2015 inclusive. He
remains on this salary until he retires on 31st December 2040.
How much will he earn during his working life.

Answer by ikleyn(52795)   (Show Source): You can put this solution on YOUR website!
.
An employee starts work on 1 January 2000 on an annual salary of $30,000.
His pay scale will give him an increase of $800 per annum
on the first of January until 1 January 2015 inclusive.
He remains on this salary until he retires on 31st December 2040.
How much will he earn during his working life.
~~~~~~~~~~~~~~~~~~~~~~~

His annual salaries from 01/01/2000 to 12/31/2015 form an arithmetic progression
with the first term  = 30000 dollars and common difference d= 800 dollars.


In particular, his annual salary for the year 2015 is 

     = 30000 + 15*800 = 42000 dollars  (the 16-th term of the AP).


Thus, from 01/01/2000 till 12/31/2015 he earned   = 576000 dollars.


From 01/01/2016 to 12/31/2040, his annual earning rate was constant 42000 dollars per year 
during  (40-15) = 25 years.

So, during these 25 years, he earns  25*42000 = 1050000 dollars.


The total earning during his working life will be this sum

    576000 + 1050000 = 1,626,000 dollars.    ANSWER

Solved.

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For introductory lessons on arithmetic progressions see
    - Arithmetic progressions
    - The proofs of the formulas for arithmetic progressions
    - Problems on arithmetic progressions
    - Word problems on arithmetic progressions
in this site.



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