In order to solve this problem, you need to use a geometric series:
[tex] S_{n} = \frac{ a_{1}(1 - r^{n}) }{1 - r} [/tex]
where:
a₁ = first term of the series = 36000
r = common rate = 10% raise, therefore 1.10
n = number of terms = 5
Therefore,
[tex] S_{n} = \frac{ 36000(1 - 1.10^{5}) }{1 - 1.10} [/tex]
= 219783.60 $
Luke's total earnings in five years are 219783.60 $.
