Find the amount of time which he will be earning $10.00 per hour

Question

Suppose that a new employee starts working at $7.49 per hour and recieves a 4% raise each year. After time t, in years, his hourly wage is given by the equation y=$7.49(1.04)^t. Find the amount of time which he will be earning $10.00 per hour

Answer 1

You are given this equation y=$7.49(1.04)^t and are asked to solve for t knowing that y = 10.00

10 = 7.49(1.04)^t

10/7.49 = 1.04^t

log(10/7.49) = log(1.04^t) = t*log(1.04)

0.1255 = t*0.017

t = 0.1255/0.017

t = 7.368 years

 

Since the salary raise occurs annually, t is rounded up to 8 years