Jackson L.

asked • 04/29/16

An employee earns $47000 his first year. He receives a 4% increase over each previous year. What is the sum for his first 5 years of service ? Formula used?

summation

1 Expert Answer

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Andrew M. answered • 05/02/16

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year 1: $47,000
 
year2: 1.04(47000) = $48,880
 
year 3: 1.04(48,880) = $50,835.20
 
year 4: 1.04(50,835.20) = $52,868.61
 
year 5: 1.04(52,868.61) = $54,983.35
 
total: $254,567.16
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Jackson L.

Thank you Andrew!! Is there summation formula that can be used with this? Another part of the question, is that, How many years would it take to earn approximately $1,000,000? 
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05/02/16

Andrew M.

5
∑(Tn + 1.4Tn-1)
n=1
 
given T1= $47,000
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05/02/16

Andrew M.

That's not quite right.
For the total Tn each year
Tn = Tn-1 + 1.4Tn-1
 
 
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05/02/16

Jackson L.

For the summation method what would be the expression to be used after the summation sign, specifically related to this figure of $47000? Hey Andrew, thank you so much for what you have sent me. 
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05/02/16

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