salaries usually grow at a rate around 2% annually. if your starting salary is $41,600, how much would you…

Explanation:

Step1: Recall continuous - compounding formula

The formula for continuous compounding is $A = Pe^{rt}$, where $A$ is the final amount, $P$ is the principal amount (starting salary), $r$ is the annual interest rate (growth rate), and $t$ is the time in years.

Step2: Identify the values of $P$, $r$, and $t$

$P = 41600$, $r=0.02$ (since $2%= 0.02$), and $t = 40$.

Step3: Substitute the values into the formula

$A=41600\times e^{0.02\times40}$.

Step4: Calculate the exponent

$0.02\times40 = 0.8$.

Step5: Calculate the value of $e^{0.8}$

Using a calculator, $e^{0.8}\approx2.22554$.

Step6: Calculate the final amount $A$

$A = 41600\times2.22554\approx92582.46$.

Answer:

$$92582.46$