SOLUTION: An employee joined a company in 1987 with starting salary of 50,000. Every year this employee receive a raise of 1000 plus 5% of the previous year. Then find A) recurrence rela

Question 1187148: An employee joined a company in 1987 with starting salary of 50,000. Every year this employee receive a raise of 1000 plus 5% of the previous year. Then find
A) recurrence relation for salary of this employee n years after 1987
B) find explicit formula for the salary of this employee n years after 1987
C) what is the salary of this employee in 1995
Answer by Theo(13342) (Show Source): You can put this solution on YOUR website!
the answer that i got is future value at the end of 8 years = 83421.88.

i used the calculator at https://arachnoid.com/finance/index.html

these are the results from using that calculator.

i then went to excel and calculated the remaining balance at the end of each year.

i also borrowed the formula from the calculator (shown on the calculator link below the calculator itself) and modified it a little to get the answer that i wanted.

the excel results are shown below:

the modified formula is shown in the excel display to the right of the end of year by end of year remaining balances.

the processing for the end of year remaining balance is:

remaining balnce at the end of the current year = (1.05 * remaining balance at the end of the previous year) + 1000

the formula you are looking for was the formula used by the calculator.

let me know if you have any questions.

theo
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