Understanding Exponential Growth in Hourly Wages

The video tutorial explains how to calculate the final hourly wage after a 3.5% annual increase over six years, starting from $14.50. It involves setting up an exponential growth equation, defining variables and constants, and performing calculations to find the final wage, which is approximately $17.82. The tutorial also covers rounding the result to the nearest cent.

What is the initial hourly wage before any increases?

• $14.00

• $14.50

• $15.00

• $13.50

How much does the hourly wage increase each year?

• 3.5%

• 2.5%

• 4.5%

• 5.5%

What type of equation is used to model the wage increase?

• Logarithmic

• Exponential

• Quadratic

• Linear

In the equation y = a * b^x, what does 'a' represent?

• Initial wage

• Time in years

• Growth rate

• Final wage

How is the growth rate expressed in the equation?

• As a whole number

• As a decimal

• As a percentage

• As a fraction

What is the decimal equivalent of a 3.5% growth rate?

• 0.035

• 3.5

• 0.35

• 0.0035

What value of 'x' is used to find the wage after six years?

• 6

• 5

• 8

• 7

What is the base 'b' in the exponential equation for this problem?

• 1.35

• 1.35

• 1.035

• 1.0035

What is the final hourly wage after six years, rounded to the nearest cent?

• $18.20

• $17.50

• $18.00

• $17.82

Why is it important to round the final wage to the nearest cent?

• To simplify calculations

• To comply with currency standards

• To make it easier to read

• To avoid errors