alexey earns 20,000 salary in the first year of his career. each year he gets 5% raise. how much does alexey earn in 4 years

Answer 1

When a quantity either increases or decreases by a fixed percentage each year, it is an exponential function:

y = a·(1 + rate)^x

where:

1. y = Alexey's salary
2. a = the starting value = $20,000
3. rate = the percent expressed as a decimal = 5% = 0.05
4. x =· the number of years = 4

y = a·(1 + rate)^x

y = $20,000·(1 + 0.05)⁴

y = $20,000·(1.05)⁴

Use your calculator to get the answer