Homework 8 Q32

Some economists suggest that an extra year of education increases a person's wages, on average, by about 14%. Assume you could make $10 per hour with your current level of education and that inflation increases wages at a continuous rate of 2.5% per year. Round your answers to two decimal places. (a) If you had had six more years of education, how much would you make per hour? dollars per hour (b) What is the difference between your wages in 15 years' time with and without the additional six years of education? dollars per hour (c) Is the difference you found in part (b) increasing with time? If so, at what rate? (Assume the number of additional years of education stays xed at six.) If the difference is not increasing, enter NA into the answer eld. The difference E] increasing with time. It is increasing at the rate of dollars per hour per year