Question

a company gives its employees a 4% raise at the beginning of every year.This year Jordan earns 32000.
Could you plz tell me how I get the year at which he earns,$40000?

Answer 1

You are looking at a GS with
a = 32000
r = 1.04

term(n) = a r^(-1)
term(n) = 32000(1.04)^(n-1)
32000(1.04)^(n-1) = 40000
1.04^(n-1) = 1.25
take logs of both sides and use log rules

(n-1)log1.04 = log1.25
n-1 = log1.25/log1.04 = 5.689
n = 6.689

The question does not say when the change in salary takes place. I would assume at the the beginning of a new year.

Answer 2

thank you