Ms Farnum was hired for a new job at a salary of $62,500 and was promised a 5% raise each year. What would Ms.Farnum's salary be, to the nearest dollar, after working there for 6 years?

62500*1.05^6 = 83755.98

Ms Farnum was hired for a new job at a salary of $62,500 and was promised a 5% raise each year. What would Ms.Farnum's salary be, to the nearest dollar, after working there for 6 years?

To find out Ms. Farnum's salary after 6 years, we can use the formula for compound interest, where the initial amount is her starting salary and the interest rate is the annual raise.

The formula for compound interest is: A = P(1 + r/n)^(nt)

Where:
A = the final amount
P = the principal amount (starting salary)
r = annual interest rate (raise in this case)
n = number of times interest is compounded per year (since it's a yearly raise, it's 1)
t = number of years

In this case, Ms. Farnum starts with a salary of $62,500, and she gets a 5% raise every year. We want to calculate her salary after 6 years, so t = 6 and r = 5%.

Plugging these values into the formula, we get:

A = 62,500(1 + 0.05/1)^(1*6)

Simplifying the formula gives:

A = 62,500(1.05)^6

Now we can calculate the final amount:

A ≈ $78,234.25

Therefore, Ms. Farnum's salary, to the nearest dollar, after working there for 6 years would be approximately $78,234.