You accept a job as a manager that pays a salary of $34,000 the first year. During the next 39 years, you receive a 4% raise each year. What would your total salary be over the 40 year period? Round answer to the nearest cent.
A)$3,740,420.98
B)$3,230,867.53
C)$3,394,102.24
D)$2,922,991.43
E)$2,638,342.67

Question

Quizplus · Accepted Answer

The total salary over 40 years can be calculated using the formula for the sum of a geometric series. The first term is $34,000, the common ratio is 1.04 (due to the 4% raise), and there are 40 terms. The sum is approximately $3,230,867.53.

You Accept a Job as a Manager That Pays a Salary