Intermediate Algebra for College Students (7th Edition)

Published by Pearson
ISBN 10: 0-13417-894-7
ISBN 13: 978-0-13417-894-3

Chapter 11 - Test - Page 871: 12


The answer is $=\$276427$.

Work Step by Step

Salary for the first year $P=\$30,000$. Rate of increase $r= 4\%=0.04$. Increment $=1+.04=1.04$. Time $t=8$. The Sum of all salary is $30,000+30,000(1.04)+30,000(1.04)^2+...+30,000(1.04)^7$ The above series is the geometric sequence therefore, the sum of the series is $\frac{30,000(1-1.04^8)}{1-1.04}=276426.787804$ Approx. value $=\$276427$.
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