SOLUTION: Calculating future value of salary. During a job interview, Pam Thompson is offered a salary of 28,000. The company gives annual raises of 6 percent. What would be Pam's salary dur

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Question 562541: Calculating future value of salary. During a job interview, Pam Thompson is offered a salary of 28,000. The company gives annual raises of 6 percent. What would be Pam's salary during her fifth year on the job?
Found 2 solutions by solver91311, josmiceli:
Answer by solver91311(24713) About Me  (Show Source):
You can put this solution on YOUR website!




Get out your calculator.

John

My calculator said it, I believe it, that settles it
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Answer by josmiceli(19441) About Me  (Show Source):
You can put this solution on YOUR website!
Call the 1st years salary +s+
Call the annual raise +r+
--------
1st year:
+s+
--------
2nd year:
+s+%2B+r%2As+
+s%2A%28+1+%2B+r+%29+
--------
3rd year:
+s%2A%28+1+%2B+r+%29+%2B+r%2A%28+s%2A%28+1+%2B+r+%29+%29+
+s%2A%28+1+%2B+r+%29%2A%28+1+%2B+r+%29+
+s%2A%28+1+%2B+r+%29%5E2+
--------
4th year:
+s%2A%28+1+%2B+r+%29%5E2+%2B+r%2A%28+s%2A%28+1+%2B+r+%29%5E2+%29+
+s%2A%281+%2B+r+%29%5E2+%2A+%28+1+%2B+r+%29+
+s%2A%28+1+%2B+r+%29%5E3+
--------
5th year:
+s%2A%28+1+%2B+r+%29%5E3+%2B+r%2A%28+s%2A%28+1+%2B+r+%29%5E3+%29+
+s%2A%281+%2B+r+%29%5E3+%2A+%28+1+%2B+r+%29+
+s%2A%28+1+%2B+r+%29%5E4+
--------
Given:
+s+=+28000+
+r+=+.06+
--------
+28000%2A%28+1+%2B+.06+%29%5E4+
+28000%2A1.2625+
+35349.35+
Pam's salary during 5th year is $35,349.35