Question

You are offered a job that pays $46,000 during the first year, with an annual increase of 9% per year beginning in the second year. That is beginning in year 2, your salary will be 1.09 times what it was in the previous year. What can you expect to earn in your fourth year on the job? Round your answer to the nearest dollar

Answer 1

Here, let's use geometric sequence:

$ar^{(n-1)}$

Where,

a = $46,000

r = 1.09

n = 4

Substitute the values in the formula:

$46000\ast1.09^{(4-1)}$$46000\ast1.09^3$$46000\ast1.295029$$=\text{ \ 59571.}334$

The amount I can earn in the fourth year = $59571

ANSWER:

$59,571