SPM Practice 2 (Geometric Progression) : Question 15

Question 15 (Question on compound interest --Must try this question)

 Choong  started working for a company on 1 January 2008 with an initial annual salary of RM28800.  Every January, the company increased his salary by 5% of the previous year’s salary. Calculate
(a) his annual salary, to the nearest RM on 1 January 2013,
(b) the minimum value of n such that his annual salary in the nth year will exceed RM40 000,
(c) the total salary, to the nearest RM, paid to him by the company, for the years 2008 to 2013.

Note on important concept :

Complete Solution :