Solve the problem.
-A job pays a salary of 29,000 the first year. During the next 9 years, the salary increases by 6% each year. What is the salary for the 10th year? What is the total salary over the 10-year period? (Round to the
Nearest cent.)
A)$48,994.89; $382,243.05
B)$48,994.89; $333,248.16
C)$51,934.58; $434,177.64
D)$51,934.58; $333,264.83

Question

Quizplus · Accepted Answer

The salary for the 10th year is calculated using the formula for compound interest: Final amount = Principal amount * (1 + rate)^time. Here, Principal amount = $29,000, rate = 6% or 0.06, and time = 9 years (since the salary increases start from the second year). So, the salary for the 10th year is $29,000 * (1 + 0.06)^9 = $48,994.89 (rounded to the nearest cent). To find the total salary over the 10-year period, we sum the geometric series or calculate each year's salary and sum them, which gives us $382,243.05.

Solve the Problem. -A Job Pays a Salary of 29,000 the First Year