Geraldo's present salary is $40 000 ( this can also be referred to as present value or PV)

The formula for compound interest is PV( 1+ r) ^n

PV= present value

r = annual interest rate

n = number of periods

So, using the formula: PV (1+r) ^n

=...

## Unlock

This Answer NowStart your **48-hour free trial** to unlock this answer and thousands more. Enjoy eNotes ad-free and cancel anytime.

Already a member? Log in here.

Geraldo's present salary is $40 000 ( this can also be referred to as present value or PV)

The formula for compound interest is PV( 1+ r) ^n

PV= present value

r = annual interest rate

n = number of periods

So, using the formula: PV (1+r) ^n

= 40000 ( 1+ 0.04) ^ 4

= 40000 (1.04)^4

= 46794.34

If he got four consecutive 4% increases, his salary would be $46,794.34