An entry level position pays 8 dollars per hour. A 4% raise is given at the end of each year of employment. What would the pay be after 3 years?

Question

My mom tried to help me and she got 8.998912 which we figured would round to 9 dollars. When i reworked the problem i got 8.96. Does someone know the real answer because i don't even know if we worked out the problem right.

Answer 1

A 4% raise for the second year would be $0.32 -- which would bring her second year wage to $8.32 per hour.

The third year, she'd get $0.33 more -- so $8.64.

Answer 2

It would be 8(1.04^3

You mom is correct at $9.00

Answer 3

At the end of the third year, she'd make $8.64 an hour. At the beginning of the fourth year, she'd make $9.00 an hour.

Answer 4

the raise is given at the end of the year, and one would assume that the 4% raise is calculated on the pay at that time.
at the end of the first year ----8(1.04) = 8.32
at the end of the second year --8.32(1.04) = 8.65
at the end of the third year --- 8.65(1.04) = 8.9989.. = $9.00

Answer 5

What would the pay be after 3 years?

AFTER being the operative word.

8(1.04)^3 = 8.998912 or $9.00.