Question

Harmony earns a \$42{,}000$42,000dollar sign, 42, comma, 000 salary in the first year of her career. Each year, she gets a 4\%4%4, percent raise.
Which expression gives the total amount Harmony has earned in her first nnn years of her career?

Answer 1

Answer:

FV(n)=42,000(1.04)^n

Step-by-step explanation:

FV=PV(1+r/n)^nt

Where

FV=future value

PV=present value

r=interest rate

n=number of periods

t=time (years)

PV=42,000

r=4%=0.04

n=1

t=n

FV(n)=p(1+r/n)^nt

=42,000(1+0.04/1)^1*n

=420000(1+0.04)^n

=42,000(1.04)^n

FV(n)=42,000(1.04)^n