His job pays a starting salary of $32,000 with a 5% raise at the end of each year. Give his salaries for the first 5 years he works.
now --- 32000
at end of year 1 = 32000(1.05) = ....
at end of year 2 = 32000(1.05)^2 = 35280
....
at end of year 5 = 32000(1.05)^5 = ...
I will let you do the button pushing, I did one of them so you know your answers are correct
40,841.01
How did you get 1.05? 5% per year should end up 0.6
To find the salaries for the first 5 years, we can use the information provided:
Starting salary: $32,000
Annual raise: 5%
First, let's calculate the raise amount for each year. We can use the formula:
Raise amount = (Percentage raise / 100) * Current salary
For the first year, the raise amount would be:
(5 / 100) * $32,000 = $1,600
To calculate the salary for the second year, we need to add the raise amount to the starting salary (Year 1 salary):
Second year salary = Starting salary + Raise amount = $32,000 + $1,600 = $33,600
Now, we can use the same process to calculate the salaries for the remaining years.
Third year:
Raise amount = (5 / 100) * $33,600 = $1,680
Third year salary = $33,600 + $1,680 = $35,280
Fourth year:
Raise amount = (5 / 100) * $35,280 = $1,764
Fourth year salary = $35,280 + $1,764 = $37,044
Fifth year:
Raise amount = (5 / 100) * $37,044 = $1,852.2
Fifth year salary = $37,044 + $1,852.2 = $38,896.2
Therefore, the salaries for the first 5 years would be:
Year 1: $32,000
Year 2: $33,600
Year 3: $35,280
Year 4: $37,044
Year 5: $38,896.2 (rounded to two decimal places)