A man joined a company as Assistant Manager. The company gave him a st

1.	A man joined a company as Assistant Manager. The company gave him a starting salary of Rs 60,000 and agreed to increase his salary 5% annually. What will be his salary after 5 years?
Answer» Starting salary (a) = Rs 60000 Increased salary = 5% of starting salary = 5/100 x 60000 = Rs 3000 Starting salary for the 2nd year = 60000 + 3000 = Rs 63000 Year increase = 5% of 63000 = 5/100 x 63000 = Rs 3150 Starting salary for the 3^rd year = 63000 + 3150 = Rs 66150 60000, 63000, 66150,… form a G.P. a = 60000; r = 63000/60000 = 63/60 = 21/20 t_n = an^{n - 1} t₅ = (60000) (21/20)⁴ = 60000 x (21/20) x (21/20) x (21/20) x (21/20) = (6 x 21 x 21 x 21 x 21)/(2 x 2 x 2 x 2) = 72930.38 5% increase = (5/100) x 72930.38 = Rs 3646.51 Salary after 5 years = Rs 72930.38 + 3646.51 = Rs 76576.90 = Rs 76577

A man joined a company as Assistant Manager. The company gave him a starting salary of Rs 60,000 and agreed to increase his salary 5% annually. What will be his salary after 5 years?

Answer»

Starting salary (a) = Rs 60000

Increased salary = 5% of starting salary

= 5/100 x 60000 = Rs 3000

Starting salary for the 2nd year = 60000 + 3000 = Rs 63000

Year increase = 5% of 63000 = 5/100 x 63000 = Rs 3150

Starting salary for the 3^rd year = 63000 + 3150 = Rs 66150

60000, 63000, 66150,… form a G.P.

a = 60000; r = 63000/60000 = 63/60 = 21/20

t_n = an^{n - 1}

t₅ = (60000) (21/20)⁴

= 60000 x (21/20) x (21/20) x (21/20) x (21/20)

= (6 x 21 x 21 x 21 x 21)/(2 x 2 x 2 x 2)

= 72930.38

5% increase = (5/100) x 72930.38

= Rs 3646.51

Salary after 5 years = Rs 72930.38 + 3646.51

= Rs 76576.90

= Rs 76577