If she starts at $43,000 per year, what will her salary be in 5 years?

Question

The equation  can be used to model a person’s future income. S = future salary, p = current salary, r = rate of increase, and t = time in years. Susan’s salary increases by 3% each year. If she starts at $43,000 per year, what will her salary be in 5 years?

 

A.	$46,750
B.	$49,850
C.	$51,750
D.	$48,000

 

Answer 1

S = P (1+r)^t

Here,P = $ 43,000

r =3% =3/100

t =5 years

S = P (1+r)^t

S = 43,000 (1+3/100)^5

   =$ 49,850

So option B is correct