Beth currently brings in an annual salary of $37,000 and anticipates a raise of 5% every year. What will her salary be in 14 years? If necessary, round your answer to the nearest cent.
A = P + I where P (principal) = $37,000.00 I (interest) = $36,257.47
Calculation Steps: First, convert R as a percent to r as a decimal r = R/100 r = 5/100 r = 0.05 rate per year,
Then solve the equation for A A = P(1 + r/n)nt A = 37,000.00(1 + 0.05/1)(1)(14) A = 37,000.00(1 + 0.05)(14) A = $73,257.47
Summary: The total amount accrued, principal plus interest, with compound interest on a principal of $37,000.00 at a rate of 5% per year compounded 1 times per year over 14 years is $73,257.47.
