5
QuizMultiple Choice

Finite Geometric Series

Question 5 • Precalculus

Abi takes a job with a starting salary of $100,000 for the first year. She earns a 3% increase each year. To the nearest dollar, how much does Abi make over the first six years?

Answer
A
$600,000
B
$618,000
C
$646,841
D
$716,431

Explanation

Each year's salary is 3% higher than the previous year's, so the six salaries are $100,000, $103,000, and so on through $100,000 × 1.03⁵. Adding them gives $100,000 × (1 + 1.03 + 1.03² + 1.03³ + 1.03⁴ + 1.03⁵) ≈ $646,840.99. Rounded to the nearest dollar, that is $646,841, choice C.

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