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3 years ago

7

Heather makes $6.50 per hour. Every three months, she is eligible for a 2% raise. How much will she make after 2 years if she ge

ts a raise every time she is eligible?

1 answer:

sammy [17]3 years ago

7 0

Answer:

$7.62 per hour

Step-by-step explanation:

Since, Heather gets a raise every 3 months, in 2 years, she will get a raise 8 times (2years = 24 months, 24 divided by 3 is 8).

Now it becomes a compound growth problem. We can use the formula shown below to solve these type of problems.

$F=P(1+r)^t$

Where,

F is the future value (what we want to find)
P is the present rate ($6.5)
r is the rate of growth, in decimal (2% growth means 0.02)
t is the time frame, number of times compounding occurs (for our case we have figured it to be 8)

<u>Now plugging in all the info, we get the value of F:</u>

$F=P(1+r)^t\\F=6.5(1+0.02)^8\\F=6.5(1.02)^8\\F=7.62$

Thus, after 2 years, Heather's hourly rate will be $7.62

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