You are considering taking a new job. A prospective employer has offered you an annual salary of $16 000 with an increase of 6% after each year of service. At this rate, how much money will you be earning after 5 years with the company?
1st year --- 16000
2nd year ---- 16000(1.06)
...
5th year ---- 16000(1.06)^5 = ...