Question 478242
Geraldo's current salary is $40,000 per year. His annual pay raise is always a percent of his salary at the time.
 What would his salary be if he got four consecutive 4% increases?
 Round any decimals to the nearest cents.
:
Use the formula: A = P*{{{(1+(r/n))^(nt)}}}
where
A = accumulated amt after t yrs
P = principal
r = interest rate in decimals
n = no. of compounding times per year
t = time in yrs
Since this is an annual raise, we can write it
A = {{{P*(1+r)^t}}}
A = {{{40000(1+.04)^4}}}
A = {{{40000*1.04^4}}}
using a calc we get
A = $46,794.34 after 4 yrs with an annual 4% raise