gordon currently brings in an annual salary of $92,338 and anticipates a raise of 5% every year. what will…

Explanation:

Step1: Identify the formula

The formula for compound - growth of salary is $A = P(1 + r)^n$, where $P$ is the initial salary, $r$ is the rate of growth as a decimal, and $n$ is the number of years.

Step2: Convert the percentage to a decimal

The rate of raise $r=5%=0.05$, the initial salary $P = 92338$, and the number of years $n = 3$.

Step3: Substitute the values into the formula

$A=92338\times(1 + 0.05)^3$. First, calculate $(1 + 0.05)^3=(1.05)^3=1.05\times1.05\times1.05 = 1.157625$. Then, $A=92338\times1.157625$. $A = 92338\times1.157625=106925.998125$.

Step4: Round the answer

Rounding $106925.998125$ to the nearest cent gives $106926.00$.

Answer:

$106926.00$