We can model the salary of Ms. Acosta with an exponential growth equation.
y= a(1+ r)^tHere, a is the initial amount, r is the rate of change expressed as a decimal. We know that the starting salary is $ 34 000, and it increases 1.5 % every year. Then a= 34 000, and r= 1.5 %, or 0.015.
y= 34 000(1+ 0.015)^t ⇔ y=34 000(1.015)^t
Now we can find her salary in 7 years. To do so, we will substitute 7 for t in the function.
