Question 562541
Call the 1st years salary {{{ s }}}
Call the annual raise {{{ r }}}
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1st year:
{{{ s }}}
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2nd year:
{{{ s + r*s }}}
{{{ s*( 1 + r ) }}}
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3rd year:
{{{ s*( 1 + r ) + r*( s*( 1 + r ) ) }}}
{{{ s*( 1 + r )*( 1 + r ) }}}
{{{ s*( 1 + r )^2 }}}
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4th year:
{{{ s*( 1 + r )^2 + r*( s*( 1 + r )^2 ) }}}
{{{ s*(1 + r )^2 * ( 1 + r ) }}}
{{{ s*( 1 + r )^3 }}}
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5th year:
{{{ s*( 1 + r )^3 + r*( s*( 1 + r )^3 ) }}}
{{{ s*(1 + r )^3 * ( 1 + r ) }}}
{{{ s*( 1 + r )^4 }}}
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Given:
{{{ s = 28000 }}}
{{{ r = .06 }}}
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{{{ 28000*( 1 + .06 )^4 }}}
{{{ 28000*1.2625 }}}
{{{ 35349.35 }}}
Pam's salary during 5th year is $35,349.35