Question 234163
please show me how to solve this word problem:
My dad earns $55000 a year. if he get a 20% annual raise for each year how much money will he have after 10 years assuming not spending any of his sallary?


Since your dad's salary increases at 20% each year, then his annual salary increases exponentially


An increase of 20% signifies that each year, his salary becomes 120%, or 1.2 of what it was the previous year, which makes the multiplying factor 1.2, with the exponent being the year that is being sought


This calculates to the following equation:


Salary at end of 10 years = {{{50000*(1.2)^10}}}


Salary at end of 10 years = {{{50000*(6.191736422)}}}


Therefore, salary at end of 10 years = ${{{highlight_green(340545.50)}}}