A teacher makes 45000 in his first yr Lakeside school and g

A teacher makes 45,000 in his first yr @ Lakeside school and gets 5% raise each yr. What is his salary for his 25^th year.

Solution

We have to use the following formula

P(t)=P₀(1+r)^t

P(t)=45000(1+.05)²⁵

P(t)=45000(1.05)²⁵

P(t)=$152,386