James has worked for the same company his entire life.His current income is $100,000 per year.When he was originally hired,he made $50,000 per year.The company has given James a consistent raise of 2 percent every year.How long has James been with the company?

Question

Quizplus · Accepted Answer

Let's say James has been working for x years.

So, his initial salary = $50,000
Current salary = $100,000

According to the question, the company gave James a consistent raise of 2 percent every year.

Using compound interest formula, we can say:

100,000 = 50,000(1+0.02)^x

Simplifying the equation, we get:

2 = 1.02^x

Taking log on both sides:

xlog(1.02) = log(2)

x = log(2)/log(1.02)

x ≈ 34.28

So, James has been working for approximately 35 years. Therefore, the answer is C) 35 years.

James Has Worked for the Same Company His Entire Life