You accept a job that pays a salary of $60,000 the first year.During the next 49 years,you will receive a 6% raise each year.What would be your total compensation over the 50-year period? Round your answer to the nearest integer.

Question

​You accept a job that pays a salary of $60,000 the first year.During the next 49 years,you will receive a 6% raise each year.What would be your total compensation over the 50-year period? Round your answer to the nearest integer. ​

Quizplus · Accepted Answer

Using the formula for sum of geometric series, 
Total compensation = $60,000 * (1-1.06^50)/(1-1.06)
Total compensation = $60,000 * (1-0.00002611)/0.06
Total compensation = $1,702,015.38
Rounded to the nearest integer, the total compensation is $17,420,154. Hence, the best choice is A.

​You Accept a Job That Pays a Salary of $60,000

You Accept a Job That Pays a Salary of $60,000