Your starting salary at a new company is $34,000 and it increases by 2.5% each year. What will your salary be in 5 years?

1 Answer
May 21, 2016

#$38467.88#

Explanation:

Use this formula for compound interest:
mathematicsi.com)

V is the salary is 5 years
P is the when you first joined
R is the percentage increase per year
N is the number of years

Therefore,

#V= 34000xx(1+2.5%)^5#

#= 34000xx1.025^5#

= $38467.88 (2dp)