Question

In 1982 , the California Minimum wage was $3.35.Suppose that a bartender in 1982 makes minimum wage plus $80 per night in tips,and that they work full time(8 hrs per day, 5 days per week, 50 weeks per year) Considering a standard inflation rate of 4.5% what was his annual salary in1982 , and what would an equivalent annual salary be in 2015 after adjusting for inflation?

Answer 1

1982: (3.35*40+80)(50) = 10700
2015: 10700*1.045^(2015-1982) = 45732.12