Find the final hourly wage if a $ 7.00 starting wage is increased by 2 % each year for 9 years.

Question

Find the final hourly wage if a $7.00 starting wage is increased by 2% each year for 9 years.

The final wage is $ 

Answer 1

To find a 2% percentage increase, we multiply by ( 1 + (2/100)) ie 1.02

A 2% increase per year over 9 years means we multiply by (1.02)⁹

So you need to find (7.00) (1.02)⁹