 gross income of $8,830 rises 3 percent per year in the future, what will their income be after five years?

To calculate the income after 5 years given a 3% annual increase, we use the formula for compound growth:

\[
A = P(1 + r)^t
\]

Where:
- $A$ is the future income.
- $P$ is the initial income ($8,830).
- $r$ is the annual growth rate (3% or 0.03).
- $t$ is the number of years (5 years).

Substituting the values:

\[
A = 8,830(1 + 0.03)^5
\]

Now let's calculate the result.After 5 years, the income will be approximately $10,236.39, given a 3% annual increase.

Do you want further details or have any other questions?

Here are 5 related questions:
1. How would the income change if the growth rate were 4% instead of 3%?
2. What would the income be after 10 years at the same growth rate?
3. How does compound growth differ from simple growth in income calculations?
4. Can we estimate the total income over 5 years with a 3% annual increase?
5. How would inflation affect the real value of this income increase?

**Tip:** Compound interest or growth allows your income to grow not only on the initial amount but also on the accumulated amount over time!

Gross income of $8,830 rises 3 percent per year in the future, what will their income be after five years?

Find out how to calculate future income when it rises by 3% annually over 5 years. This example uses the compound growth formula to determine how an initial income of $8,830 grows to $10,236.39 in five years. Ideal for students in Grades 9-12 or anyone learning about compound interest.

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