Kenneth recentley started a new job. his starting gross monthly salary was 3200. Each year on the anniversary of his starting date, kenneth is promised a 7% raise.
If keneth works for 5 years what was his gross annual income in his fifth year of work?
my work:
A=p(1+ i)^n
A=?
p= $3200
i: 7%
n= 5
A=p(1+ i)^n
A=3200(1+0.07)^5
a= 3200(1.07)^5
A= 4488.17 I rounded it! is this correct?
there is part b to this question!
what is the minuim number of years Kenneth will have to work to earn a gross annual income of at least $60000?
I would think I would use the same formula right?
A=p(1+ i)^n
A= $60 000
p= $3200
i: 7%
n= ?
60 000 =3200(1+0.07)^n
but I get lost here how would I get n by itself?
thanks for your help!
Part A looks correct.
For part B just keep simplifying
60,000 = 3200(1+0.07)^n so
18.75 = (1+0.07)^n
Take the ln of each side to get
ln(18.75) = n*ln(1.07) so
ln(18.75)/ln(1.07) = n
show me how you calculate this eg.
Mr.Williains bought a plot og land for $40 000. The value of theland appreciated by 7% each year. calculate the volue of the land after a period of two years.
tell me how
use log on both sides to solve for n brandy.
use your scientefic calculator to find ln 18.75 and ln 1.07.
To calculate the value of the land after a period of two years, you can use the formula for compound interest:
A = P(1 + i)^n
Where:
A = the final value of the land
P = the initial value of the land ($40,000)
i = the annual interest rate (7% or 0.07)
n = the number of years (2)
Plugging in the values, we have:
A = 40,000(1 + 0.07)^2
Now let's calculate it step by step:
Step 1: Calculate the interest rate plus 1
1 + 0.07 = 1.07
Step 2: Raise the result to the power of the number of years
1.07^2 = 1.1449
Step 3: Multiply the initial value by the result from step 2
40,000 * 1.1449 = 45,796
Therefore, the value of the land after two years would be $45,796.