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 $87,300, what will her salary be in 9 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 $87,300, what will her salary be in 9 years? if necessary, round your answer to the nearest cent.

Answer

Explanation:

Step1: Identify the formula

We use the compound - growth formula $A = P(1 + r)^n$, where $P$ is the initial amount, $r$ is the growth rate as a decimal, and $n$ is the number of years. Here, $P=$87300$, $r = 0.05$ (since $5%=0.05$), and $n = 9$.

Step2: Substitute the values into the formula

$A=87300\times(1 + 0.05)^9$. First, calculate $(1 + 0.05)^9$. Using a calculator, $(1.05)^9\approx1.5513282158$. Then, multiply by the initial amount: $A = 87300\times1.5513282158$. $A\approx135431.95$.

Answer:

$135431.95$