Answer
Total salary paid over an eight year = 276,426.78
Work Step by Step
Salary paid first year = 30000
Given every next year salary increase by 4% that means salary multiply by 1.04 every next year.
So common ratio (r) = 1.04
Total salary paid over an eight year = $a_{1}\frac{1 - r^{n}}{1 - r}$
= 30000$\times$$\frac{1 - 1.04^{8}}{1 - 1.04}$
= 30000$\times$$\frac{1 - 1.3685}{1 - 1.04}$
= 30000$\times$$\frac{-0.3685}{- 0.04}$
= 30000$\times$9.214
= 276426.78
