Question

find the final hourly wage if a $9.00 starting wage is increased by 4% each year for 9 years. the final wage is $ . round answer to 2 decimal places

Explanation:

Step1: Identify the formula for compound growth

The formula for compound growth is $A = P(1 + r)^t$, where $P$ is the principal amount (starting wage), $r$ is the annual growth rate (as a decimal), and $t$ is the number of years.
Here, $P = 9$, $r = 0.04$ (since 4% = 0.04), and $t = 9$.

Step2: Substitute the values into the formula

Substitute $P = 9$, $r = 0.04$, and $t = 9$ into the formula:
$A = 9(1 + 0.04)^9$

Step3: Calculate $(1 + 0.04)^9$

First, calculate $1 + 0.04 = 1.04$. Then, calculate $1.04^9$. Using a calculator, $1.04^9 \approx 1.423311868$.

Step4: Calculate the final amount

Multiply 9 by the result from Step3:
$A = 9 \times 1.423311868 \approx 12.81980681$

Step5: Round to two decimal places

Round $12.81980681$ to two decimal places, which gives $12.82$.

Answer:

12.82