Question On Salary and Raises

[Dryerfish]

Hi, I need help solving the following problem, I don't have the exact wording so hopefully it still makes sense.

Someone coming out of college earned an annual salary of $52,000. Five years later, he was earning $78,200.
What percent did his salary increase each year?


The percent needs to be the same for each year. An 8.5 percent increase per year over five years got me to around $78,000 but I don't know the steps required to get to that point and to find the percentage.


Thanks!

 

[stapel]

Someone coming out of college earned an annual salary of $52,000. Five years later, he was earning $78,200.
What percent did his salary increase each year?

The percent needs to be the same for each year....

This can be modelled with the compound-interest formula. Let the original salary be the "principal" P on the "account" (being the person getting the salary). The ending amount A is the ending salary. "Interest" is the extra amount paid to the "account". Compounding (being the increasing amount) is "annual", so n = 1. And the "investment" time t = 5.

Plug into the compound-interest formula (here), and solve for the interest-rate "r".

If you get stuck, please reply showing your efforts so far. Thank you!