Answer:
$8.28
Step-by-step explanation:
This is a compound growth problem.
The formula is:
[tex]F=P(1+r)^t[/tex]
Where F is the future amount (amount in 3 yrs)
P is the initial amount (here, it is 7.15)
r is the rate of growth, in decimal (5% means 5/100 = 0.05)
t is the time , in years ( t = 3)
Now, substituting, we find the hourly wage after 3 years:
[tex]F=P(1+r)^t\\F=7.15(1+0.05)^3\\F=7.15(1.05)^3\\F=8.28[/tex]
Hence,
after 3 years, at 5% growth, the new hourly wage would be $8.28
