Answer: Vicky’s hourly pay will be $8.3 in 3 years.
Step-by-step explanation:
Suppose that her hourly pay increases by 5% each year, it means that the rate at which it is increasing is exponential. We would apply the formula for exponential growth which is expressed as
A = P(1 + r)^t
Where
A represents the hourly pay after t years.
t represents the number of years.
P represents the initial hourly pay.
r represents rate at which it is increasing.
From the information given,
P = $7.15
r = 5% = 5/100 = 0.05
t = 3 years
Therefore
A = 7.15(1 + 0.05)^3
A = 7.15(1.05)^3
A = $8.3
