Yahoo Answers is shutting down on May 4th, 2021 (Eastern Time) and beginning April 20th, 2021 (Eastern Time) the Yahoo Answers website will be in read-only mode. There will be no changes to other Yahoo properties or services, or your Yahoo account. You can find more information about the Yahoo Answers shutdown and how to download your data on this help page.
Trending News
Help with a future value calculation?
I am trying to calculate the long-term financial impact of salary increase that is postponed for three years. Here's the problem in a nutshell...
Two years ago, I was turned down for a promotion that carried an automatic salary increase of $3,000 per year. Annual salary adjustments typically amount to a 3% increase each year. Note that I was denied promotion because of a mostly voluntary decision on my part to accept a particular work-related responsibility...I have now backed out of that responsibility and should be eligible for promotion next year.
I know that my original decision will cost me $9,000 (the $3,000 per year I didn't receive for three years), but my question is this... What is the true total financial impact over a 20-year career of the three year delay in receiving that raise? For example, I know that in the first year, I merely lost $3,000...but in the second year, I lost another $3,000 PLUS the 3% raise associated with the $3,000 raise I didn't receive the previous year ($3,090 total) and in the second year I lost another $3,000 plus the 3% raise associate with the $3,090 raise I didn't receive in the second year.
How would I go about calculating the total financial impact of the delayed promotion over the course of a 20-year career with the company???
2 Answers
- Anonymous1 decade agoFavorite Answer
From finance class, I remember that FV = PV(1+i) for a sum of money invested for 1 year. Your promotion/raise can be treated like an investment in a calculation because the 3% is basically a "return", but in your case, it's fixed.
FV = 3000 (20+.03) = 60,900
Not sure if this is the exact formula you should use, but it seems logical, from what I read. Hope that helps.
- 1 decade ago
is this a math question?
o gosh i'm the first one to answer!!! but not like i really did.. umm
love ya! anyways! Jesus rules! don't trust the monkey they steal wallets