An employee joined a company in 2019 with a starting salary of 120,000 Dhs per year. Every year this employee receives araise of 5% of the salary of the previous year.

Question

a.    Set up a recurrence relation for the salary of this employee. (Open formula)

b.    Find an explicit formula for the salary of this employee n years after 2019. (Closed formula)

c.     What will the salary of this employee be in 2025?

I NEED HELP PLEASE!

Answer 1

a. s₁= 120000; s_n = s_n-1·1.05, n ≥ 2

b. s_n = 120000·1.05^{n - 1}

^{c. In 2025 n = 2025 - 2019 = 6.}

^S₆ = 120000·1.05⁵ = $153153.79