Question

the expression $1350(1.05)^t$ models the average wages, in dollars, in the us as a function of the number of years since 1930. what does $1.05$ represent in this expression? choose 1 answer: a the average wages double every $1.05$ years. b the average wages in the us increase by about $5\\%$ each year. c the average wages in the us were about $\\$1.05$ in 1930.

Explanation:

The given expression follows the exponential growth formula $P(t) = P_0(1+r)^t$, where $P_0$ is the initial value, $r$ is the annual growth rate, and $t$ is time. Here, $1.05 = 1 + 0.05$, so 0.05 (or 5%) is the annual growth rate of wages. Option A is incorrect because doubling time uses a different calculation, and Option C is wrong because 1350 is the 1930 wage value.

Answer:

B. The average wages in the US increase by about 5% each year.