your starting salary at a new company is 45000. Each year you receive a 2% raise. How long will it take you to make $80000?
Let y be the number of years of compounding the 2% raise. Since 2% as a decimal is 0.02, we have the following equation for compounding the salary:
45000 * (1.02)^y = 80000
Divide each side by 45000:
(1.02)^y = 1.77777777778
To solve this equation for y, we type it in our search engine and we get:
y = 29.05
Or just over 29 years
Let y be the number of years of compounding the 2% raise. Since 2% as a decimal is 0.02, we have the following equation for compounding the salary:
45000 * (1.02)^y = 80000
Divide each side by 45000:
(1.02)^y = 1.77777777778
To solve this equation for y, we type it in our search engine and we get:
y = 29.05
Or just over 29 years