Kenneth recentley started a new job. his starting gross monthly salary was 3200. Each year on the anniversary of his starting date, kenneth is promised a 7% raise.
If keneth works for 5 years what was his gross annual income in his fifth year of work?
my work:
A=p(1+ i)^n
A=?
p= $3200
i: 7%
n= 5
A=p(1+ i)^n
A=3200(1+0.07)^5
a= 3200(1.07)^5
A= 4488.17 I rounded it! is this correct?
there is part b to this question!
what is the minuim number of years Kenneth will have to work to earn a gross annual income of at least $60000?
I would think I would use the same formula right?
A=p(1+ i)^n
A= $60 000
p= $3200
i: 7%
n= ?
60 000 =3200(1+0.07)^n
but I get lost here how would I get n by itself?
thanks for your help!
7% rate,3 years $21
2 answers