Jim's current income is $12000. If his monthly income increased by 10%. Find the total income after 2 months.
closed as off-topic by John B, Martin R, Umberto P., Watson, MCT May 18 '16 at 14:28
This question appears to be off-topic. The users who voted to close gave this specific reason:
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You can do like that:
After one month: 12000 + 0.1x12000 = 12000 + 1200 = 13200
After two months: 13200 + 0.1x13200 = 13200 + 1320 = 14520
But the problem is when the number of months get big!
Then you can use $M = C(1 + i)^t$, $M$ is the final capital, $C$ is the inicial capital, $i$ is the rate and $t$ is the time (like how many months.)
$12000 \times (1.10)^2 = 14520$ is his income after 2 months..