Answer:
[tex]Y(T) = 2(1.05)^T[/tex]
Step-by-step explanation:
The player's salary, in millions of dollars, t years after 2015, is given by an equation in the following format:
[tex]Y(T) = Y(0)(1+r)^T[/tex]
In which Y(0) is his initial salary and r is the growth rate, as a decimal.
A hockey player earns 2 million in 2015 during the next 10 years to earnings increase 5%
This means, respectively, that:
[tex]Y(0) = 2, r = 0.05[/tex]
So
[tex]Y(T) = Y(0)(1+r)^T[/tex]
[tex]Y(T) = 2(1+0.05)^T[/tex]
[tex]Y(T) = 2(1.05)^T[/tex]
