a union has successfully negotiated for its members to get 5% raises annually. if a union member currently…

a union has successfully negotiated for its members to get 5% raises annually. if a union member currently has a salary of $30,140, what will her salary be in 10 years? if necessary, round your answer to the nearest cent.

a union has successfully negotiated for its members to get 5% raises annually. if a union member currently has a salary of $30,140, what will her salary be in 10 years? if necessary, round your answer to the nearest cent.

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 annual growth rate as a decimal, and $n$ is the number of years.

Step2: Convert the percentage to a decimal

Given $r = 5%=0.05$, $P=$30140$, and $n = 10$.

Step3: Substitute values into the formula

$A=30140\times(1 + 0.05)^{10}$.

Step4: Calculate $(1 + 0.05)^{10}$

$(1 + 0.05)^{10}=1.05^{10}\approx1.628894626777$.

Step5: Calculate the final salary

$A = 30140\times1.628894626777\approx49094.88$.

Answer:

$49094.88$