Question

You earn $20.00 per hour at your job. If you get a 10% raise at the end of each year, what will your hourly rate, h, be after 8 years? Use the equation 2003-20-05-00-00_files/i0100000.jpg, where C is the beginning hourly rate, r is the growth rate, and t is time in years.
A.
$36.00
B.
$22.00
C.
$47.27
D.
$42.87

Answer 1

The answer is $42.87

$h = C(1 +r)^{t}$

We know:
C = $20.00
r = 10% = 10%/100% = 0.1
t = 8 years
h = ?

h = 20 * (1 + 0.1)⁸
h = 20 * (1.1)⁸
h = $42.87