a job pays a salary of $19,00 the first year. during the next 10 years the salary increases by 4% each year. what is the lifetime salary over the 11 year period?

Question

a job pays a salary of $19,00 the first year.  during the next 10 years the salary increases by 4% each year.  what is the lifetime salary over the 11 year period?

Reiny · Accepted Answer

year 1 = 19000
year 2 = 19000(1.04)
year 3 = 19000(1.04)^2
..
year 10 = 19000(1.04)^9

I somehow expect that "they" want you to add them up.
It would be a GS, with a = 19000, r = 1.04 , n = 10

BUT, from an actuarial point of few monies cannot just be added up unless they are at the same spot on a time line.
I wonder if your question considers that.

Damon · Answer

geometric series a + a r + a r^2 + a r^3 ... a r^10 a =19,000 r = 1.04 S = a (1-r^n)/(1-r)