Some economists suggest that an extra year of education increases a person's wages,on average, by 14%. Assume you could make 10 per hr with your current level of education and that inflation increases wages at a continuous rate of 3.5% per year.

a.How Much would you make per hour with 4 additional years of education.

b.What is the difference between your wages in 20 years time with or without additional 4 years of education.

c.Is the difference you found in (b) increasing with time? If so, at what rate.(Number of years 4)

Question

Some economists suggest that an extra year of education increases a person's wages,on average, by 14%.  Assume you could make 10 per hr with your current level of education and that inflation increases wages at a continuous rate of 3.5% per year.

a.How Much would you make per hour with 4 additional years of education.


b.What is the difference between your wages in 20 years time with or without additional 4 years of education.


c.Is the difference you found in (b) increasing with time?  If so, at what rate.(Number of years 4)