Answer:
Total earnings at the end of 5 years
= $87071.293
Step-by-step explanation:
First year
$64,000
Second year
$64,000 + 8% of previous year
= $64,000 + 0.08*$64,000
= $69120
Third year
$69120 + 8% of previous year
= $69120 + 0.08*$69120
= $74649.6
Fourth year
$74649.6 + 8% of previous year
= $74649.6 + 0.08*$74649.6
= $80621.568
Fifth year
$80621.568 + 8% of previous year
= $80621.568 + 0.08*$80621.568
= $87071.293
