During a job interview, Pam Thomson is offered a salary of $28,000. The Company gives annual raises of 6 percent. What would be Pam's salary during her fifth year on the job?

Answer 1

$28,000 * 1.06^4 = $35,349.35

first year 28 k
second year 28 k * 1.06^1
third year 28 k * 1.06^2 etc