Question

After graduation from college, Justin decided to join a new company. He agreed to a salary which will increase by 3.7% each year and will earn 77,536 for his twelfth year of work.
Part A: To the nearest dollar, what is Justins starting salary?

Answer 1

Using an exponential function, it is found that Justin's starting salary was of $50,137.

What is an exponential function?

An increasing exponential function is modeled by:

$A(t) = A(0)(1 + r)^t$

In which:

• A(0) is the initial value.

• r is the growth rate, as a decimal.

In this problem, we have that r = 0.037 and A(12) = 77536, hence:

$A(t) = A(0)(1 + r)^t$

$77536 = A(0)(1.037)^{12}$

$A(0) = \frac{77536}{(1.037)^{12}}$

A(0) = 50137.

Justin's starting salary was of $50,137.

More can be learned about exponential functions at https://brainly.com/question/25537936