Your starting salary at a new company is $45,300 and it increase by 3.25% each year. How many
years will it take for your salary to reach $75,000?
"Careful with rounding too soon
Solve

Answer :

it take 16 years for your salary to reach $75,000 .

Step-by-step explanation:

Here we have , Your starting salary at a new company is $45,300 and it increase by 3.25% each year. How many  years will it take for your salary to reach $75,000. Let's find out:

Let t be the number of years after which $45,300 is increased to $75,000 at increase of 3.25% . So , equation from the above statement is given as :

⇒ [tex]75000 = 45300( 1 + \frac{3.25}{100} )^t[/tex]

⇒ [tex]75000 = 45300( 1 +0.0325 )^t[/tex]

⇒ [tex]75000 = 45300( 1.0325 )^t[/tex]

⇒ [tex]\frac{75000}{45300} = ( 1.0325 )^t[/tex]

⇒ [tex]( 1.0325 )^t = 1.65562914[/tex]

Taking anti log with base 1.0325:

⇒ [tex]t = Log_1._0_3_2_5(1.65562914)[/tex]

⇒ [tex]t = 15.76[/tex]

On rounding off we get :

⇒ [tex]t = 16[/tex]

Therefore , it take 16 years for your salary to reach $75,000 .

Other Questions