document.write( "Question 698913: Hi. I kind of understand how a total salary amount over a certain period of years with a fixed annual increase using arithmetic series is done but how does one do this if the annual rate of increase is a percentage? e.g. What would be the total amount of a salary that starts at $20,000 per year at an annual increase of 5% over 10 years? Thank you. Paul Stone \n" ); document.write( "

Algebra.Com's Answer #431114 by josmiceli(19441) $\"\"$ $\"About$

You can put this solution on YOUR website!
You can get to a formula using step-by-step
\n" ); document.write( "Use $\"+x+\"$ for now instead of the $20,000
\n" ); document.write( "Year 1:
\n" ); document.write( " $\"+x+\"$
\n" ); document.write( "Year 2:
\n" ); document.write( " $\"+x+%2B+.05x+\"$
\n" ); document.write( "Year 3:
\n" ); document.write( " $\"+%28+x+%2B+.05x+%29+%2B+.05%2A%28+x+%2B+.05x+%29+\"$
\n" ); document.write( " $\"+%28+x+%2B+.05x+%29%2A%28+1+%2B+.05+%29+\"$
\n" ); document.write( " $\"+x%2A%28+1+%2B+.05+%29%2A%28+1+%2B+.05+%29+\"$
\n" ); document.write( " $\"+x%2A%28+1+%2B+.05+%29%5E2+\"$
\n" ); document.write( "Year 4:
\n" ); document.write( "

\n" ); document.write( " $\"+%28+1+%2B+.05+%29%2A%28+%28+x+%2B+.05x+%29+%2B+.05%2A%28+x+%2B+.05x+%29+%29+\"$
\n" ); document.write( " $\"+%28+1+%2B+.05+%29%2A%28+1+%2B+.05+%29%2A%28+x+%2B+.05x+%29+\"$
\n" ); document.write( " $\"+x%2A%28+1+%2B+.05+%29%5E3+\"$
\n" ); document.write( "------------------
\n" ); document.write( "The formula looks like
\n" ); document.write( " $\"+x%2A%28+1+%2B+.05+%29%5E%28+n+-+1+%29+\"$ where $\"+n+\"$ is the number of years
\n" ); document.write( "Plugging in numbers:
\n" ); document.write( " $\"+20000%2A%28+1+%2B+.05+%29%5E9+\"$
\n" ); document.write( " $\"+20000%2A%28+1+%2B+.05+%29%5E9+=+20000%2A1.55133+\"$
\n" ); document.write( " $\"+20000%2A1.551328+=+31026.56+\"$
\n" ); document.write( "Salary after 10 years = $31,026.56\r
\n" ); document.write( "
\n" ); document.write( "\n" ); document.write( " \n" ); document.write( "

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