This is actually a fairly simple situation (i.e. Stephen charges $6.25 per hour). However, the way it's presented is looking for you to think a little deeper. Specifically, if a rate of change of one variable (cost) relative to another variable (time) is constant, then the function graphs a straight line and can be described by a linear equation. Our goal then is to find the equation of cost (C) as a function of time (t). Point slope format is a useful method of finding a linear equation. First, we need to find slope. Comparing the two given points, we have
ΔC / tΔ = (50 - 31.25) / (8 - 5) = 18.75 / 3 = 6.25
We could even state the slope as $6.25/hr if we wanted at this point. Putting this into the point slope formula (using the first point), we have
(C - 31.25) / (t - 5) = 6.25
C - 31.25 = 6.25t - 31.25
C = 6.25t
So now we have an equation for C(t), that should make intuitive sense.
If you have any follow-on questions, let me know.

Andrew M.
12/21/16