Question

if your starting salary were 40000 and you receive a 3% increase at the end of every year, what is the total amount, in dollars, you will earn over the first 16 years that you work

Answer 1

This is a model of geometric progression with the starting salary of 40000 as the start value and the common ratio of 1.03. So we have to calculate the sum of the 16 terms: 400000*(1-1.03^16)/(1-1.03)=8062752.52 (dollars).