Today you earn a salary of $28,500. What will be your annual salary ﬁfteen years from now if you earn annual raises of 3.5%?

Question

Quizplus · Accepted Answer

The correct answer is C) $47,747.44.To calculate the annual salary fifteen years from now, we need to apply the annual raises of 3.5% for each of the fifteen years. We can use the formula:Future salary = Present salary * (1 + annual raise rate)^number of yearsPlugging in the values, we get:Future salary = $28,500 * (1 + 0.035)^15= $28,500 * 1.67556= $47,747.44Therefore, the annual salary fifteen years from now will be $47,747.44.

Today You Earn a Salary of $28,500