Question

a basketball player signs a contract with a starting salary of 850,000 per year and an annual increase of 4.5% beginning in the second year. What will the athletes salary be, to the nearest dollar, in the sixth year?

Answer 1

850,000(.045)=38,250
Year 2: 850,000+38,250=888,250
Year 3: 888,250+38,250=926,500
Year 4: 926,500+38,250=964,750
Year 5: 964,750+38,250=1,003,000
Year 6: 1,003,000+38,250=1,041,250

In his/her sixth year, the salary will be $1,041,250.

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