Series Question. (1 Viewer)

[redpint]

Hi guys, I was wondering what series formula you would use to solve this question and how to apply it.

Lucia is currently earns $25 000. Her wage increases by 5% each year. Find
(A) her wage after 6 years
(B) Her total earnings (before tax) in 6 years.

Answers are (A) $33 502.39 (B) $178 550.21

Thanks!

 

[michaeljennings]

This is a GP
a= 25,000 and r =1.05

 

[GoldyOrNugget]

a) GP, first term 25000, ratio 1.05. Find the 7th term (or 6th term, wording is a bit ambiguous)
b) Use sum of GP for the first 6/7 terms of (a)

 

[michaeljennings]

yea it is ambiguous actually but I would suggest it would be the 6th term
After first year = 25,000
After second year = 25,000(1.05)
So after 6 years should be =25,000(1.05)^5