If you earn 3250 per month and you expect your earnings to i

If you earn $3250 per month and you expect your earnings to increase by 2.7% per year, how much do you think you will be making in 6 years? (Express your answer rounded correctly to the nearest cent!)

Solution

use compound interest

P=3250

r= 2.7%

Amount= P(1+r/100)^n

= 3250 (1+0.027)^6 =3813.34$