Question

A college graduate expects to earn a salary of $55,000 during the first year after graduation and receive a 4% raise every year after that. What is the total income he will have received after ten years? A. $660,335.89 B. $582,053.74 C. $572,000.00 D. $741,749.33

Answer 1

Looks like your answers are incorrect. None of the answers are correct.

Lets examine:

In year 1, he or she earns 55,000 = 55,000 * (1.04)^0

In year 2, he or she earns

55,000*1.04 =

(55,000 * .04) + 55,000 =

55,000(1.04)^1

In year 3, he or she earns 55,000*(1.04)^2

In year 4, he or she earns 55,000*(1.04)^3

This continues to 55,000*(1.04)^9 = 78282.149 = 78282.15

Your answer should be 78,282.149 or or 78,282.14 or 78,282.15

Answer 2

Answer:

$660,335.89

Hope this helps!