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7 November, 15:19

Vicky starts a new job with an hourly pay of $7.15. Suppose that her hourly pay increases by 5% each year. What will Vicky's hourly pay be in 3 years

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  1. 7 November, 17:12
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    Answer: Vicky's hourly pay will be $8.3 in 3 years.

    Step-by-step explanation:

    Suppose that her hourly pay increases by 5% each year, it means that the rate at which it is increasing is exponential. We would apply the formula for exponential growth which is expressed as

    A = P (1 + r) ^t

    Where

    A represents the hourly pay after t years.

    t represents the number of years.

    P represents the initial hourly pay.

    r represents rate at which it is increasing.

    From the information given,

    P = $7.15

    r = 5% = 5/100 = 0.05

    t = 3 years

    Therefore

    A = 7.15 (1 + 0.05) ^3

    A = 7.15 (1.05) ^3

    A = $8.3
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