If you earn $3300 per month and you expect your earnings to increase by 6.9% per year, how much do you think you will be making in 6 years?

Question

I need help solving this problem.

Answer 1

The correct answer is $55,282.00

 

The method is to simply multiply your wages by 1.069, then the product times 1.069 four more times.

 

Result = $55,282.00

 

1   39,600.00 * 1.069
2   42,332.40 * 1.069
3   45,253.34 * 1.069
4   48,375.82 * 1.069
5   51,713.75 * 1.069
6   55,282.00

Answer 2

Y1: 3,300x12= 39,600 

 

39,600 x .069= 2,732.40

 

Y2: 39,600 + 2,732.40= 42,332.40

 

42,332.40 x .069= 2,920.94

 

Y3: 42,332.40 + 2,920.94 = 45,253.34

 

45,253.34 x .069= 3,122.48

 

Y4: 45,253.34 + 3,122.48 = 48,375.82

 

48,375.82 x .069 = 3,337.93 

 

Y5: 48,375.82 + 3,337.93 = 51,713.75

 

51,713.75 x .069 = 3,568.25

 

Y6: 51,713.75 = 3,568.25 = 55,282