You accept a job that pays a salary of $\$$ 50,000 the first year. During the next 39 years, you will receive a 4% raise each year. What would be your total compensation over the 40-year period? Round your answer to the nearest integer.

Question

Quizplus · Accepted Answer

The total compensation over the 40-year period can be calculated using the formula for the sum of a geometric series, where the first term is the initial salary (\$50,000), the common ratio is the annual raise (1.04), and there are 40 terms. The sum of this series gives the total compensation, which is closest to \$4,751,276.

You Accept a Job That Pays a Salary Of $\$$ 50,000 the First Year