Solve.
-A basketball player signs a contract with a starting salary of $850,000 per year and an annual increase of6.5% beginning in the second year. What will the athleteʹs salary be, to the nearest dollar, in the sixth year?
A)$1,164,574
B)$1,165,367
C)$1,163,330
D)$1,166,854

Question

Quizplus · Accepted Answer

The salary in the sixth year can be calculated using the formula for the amount in a geometric sequence, $A = P(1 + r)^n$, where $P$ is the initial amount, $r$ is the rate of increase (expressed as a decimal), and $n$ is the number of periods. Here, $P = \$850,000$, $r = 0.065$, and $n = 5$ (since the increase starts in the second year, the sixth year is the fifth year of increase). Plugging these values in, we get $A = 850,000(1 + 0.065)^5$, which calculates to approximately \$1,164,574.

Solve. -A Basketball Player Signs a Contract with a Starting Salary