Achieving Financial Success: Total Income After Ten Years
What is the total income a college graduate will have received after ten years?
a. $720,366.43
b. $634,967.72
c. $624,000.00
d. $809,181.80
The total income the college graduate will have received after ten years is $809,181.80.
To calculate the total income over ten years, we need to consider the salary for each year and the 4% annual raise. In the first year, the salary is $60,000. From the second year onwards, the salary increases by 4% compared to the previous year. Using this information, we can calculate the salary for each year and sum them up to find the total income after ten years.
Financial success is achievable with careful planning and consistent effort. In the case of a college graduate entering the workforce, the journey towards a stable income starts with the initial salary expectation of $60,000.
With a 4% raise each year, the graduate's income grows steadily, reflecting dedication and growth in their career. The formula for calculating the salary for each year accounts for the initial salary and the incremental raise:
Year 1: $60,000 Year 2: $60,000 + (4% of $60,000) Year 3: $60,000 + (4% of $60,000) + (4% of previous year's salary) ... Year 10: $60,000 + (4% of $60,000) + (4% of previous year's salary) + ... + (4% of previous year's salary)By summing up these calculated salaries for each year, the total income after ten years amounts to $809,181.80. This achievement is a testament to the graduate's perseverance and commitment to financial growth. By setting goals and working towards them consistently, anyone can pave the way for a successful financial future.