Answer:
In seven years the hourly rate will be $15.79.
Step-by-step explanation:
Giving the following information:
Hourly rate= $10.5
Number of periods= 7 years
Increase rate (i)= 6%
To calculate the hourly rate in 7 years, we need to use the following formula:
FV= PV*(1 + i)^n
FV= 10.5*(1.06^7)
FV= $15.79
In seven years the hourly rate will be $15.79.
