Solve.
-Carla takes a job with a starting salary of $42,000 for the first year with an annual increase of 6% beginningin the second year. What is Carlaʹs salary, to the nearest dollar, in the sixth year?
A)$56,205
B)$56,788
C)$54,783
D)$58,307

Question

Quizplus · Accepted Answer

Carla's salary in the sixth year can be calculated using the formula for the future value of a series with annual compounding: $FV = P(1 + r)^n$, where $P$ is the principal amount ($42,000), $r$ is the annual increase rate (6% or 0.06), and $n$ is the number of years (5 years, since the increase starts in the second year). Plugging in the values: $FV = 42000(1 + 0.06)^5 = 42000(1.338225577)$, which gives approximately $56,205, rounded to the nearest dollar.

Solve. -Carla Takes a Job with a Starting Salary of $42,000