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15-10-2016
Mathematics

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The equation S = p( 1+r )^2 can be used to model a person’s future income. S = future salary, p = current salary, r = rate of increase(% in decimal form), and t = time in years. Bob’s salary increases by 5% each year. If he starts at $35,000 per year, what will his salary be in 5 years?

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texaschic101 texaschic101

15-10-2016

S = p(1 + r)^t
S = 35,000(1 + .05)^5
S = 35,000(1.05^5)
S = 44669.85 rounds to 44,670

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