Mason was offered a job that paid a salary of $98,000 in its first year. The salary was set to increase by 3% per year every year. If Mason worked at the job for 28 years, what was the total amount of money earned over the 28 years, to the nearest whole number?
stanschim
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S = 98000 + 98000(1.03) + 98000(1.03^2) + ... + 98000(1.03^27)
S(1.03) = 98000(1.03) + 98000(1.03^2) +...+ 98000(1.03^27) + 98000(1.03^28)
Subtracting the second equation from the first gives:
S - 1.03S = 98000 - 98000(1.03^28)
S(1 - 1.03) = 98000(1 - 1.03^28)
S = [98000(1 - 1.03^28)] / (1 - 1.03) = $4,207,230.41 = $4,207,230 to the nearest dollar.