11. brenton wants to know his salary three years from now to see if he will be earning enough to purchase…

11. brenton wants to know his salary three years from now to see if he will be earning enough to purchase his first home. he currently makes $43,270 and earns a 2% raise every year. in three years, what will brentons salary be? $47,963.77 $44,435.40 $52,637.64 $45,918.47

11. brenton wants to know his salary three years from now to see if he will be earning enough to purchase his first home. he currently makes $43,270 and earns a 2% raise every year. in three years, what will brentons salary be? $47,963.77 $44,435.40 $52,637.64 $45,918.47

Answer

Explanation:

Step1: Identify the formula

The formula for compound - growth of salary is $A = P(1 + r)^n$, where $P$ is the initial salary, $r$ is the rate of increase as a decimal, and $n$ is the number of years. Here, $P=$43270$, $r = 0.02$, and $n = 3$.

Step2: Substitute the values into the formula

$A=43270\times(1 + 0.02)^3$. First, calculate $(1 + 0.02)^3=(1.02)^3=1.02\times1.02\times1.02 = 1.061208$.

Step3: Calculate the final salary

$A = 43270\times1.061208=$45918.47$.

Answer:

$45918.47$ (corresponding to the fourth option in the multiple - choice list)