Catstuffcom adjusts salaries based on changes in its stock p

Catstuff.com adjusts salaries based on changes in its stock price, which has increased consistently at 1/5 its value per year. Yearly raises are the same fraction of the current salary as the yearly fractional change in stock prices. Juan currently earns $54,000 per year at Catstuff.com. Find last year\'s salary, the salary in 3 years, and the salary 3 years ago. What was Juan\'s salary last year? $

Solution

Dear Student Thank you for using Chegg !! Current Salary of Juan = 54000 $ Salary increse 1/5 its value after each year Let the last year salary be x Calculating relation between last year salary and present salary Present Salary = x + (1/5)x Hence from above relations (6/5)x = 54000 $ x = 45000 Hence last year salary is 45000 $ Through same relation salary in previous year = Present salary* 5/6 Salary 2 years before = 45000*5/6 $ = 37500 $ Salary 3 years before = 37500*5/6 $ = 31250 $ Solution