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Some economists suggest that an extra year of education increases a person's wages, on average, by about 12% (note that it is annual rate of
Some economists suggest that an extra year of education increases a person's wages, on average, by about 12% (note that it is annual rate of change, not continuous one). Assume you could make $21 per hour with your current level of education and that inflation increases wages at a continuous rate of 3.3% per year. Round your answers to two decimal places. (a) If you had had two 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 two 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 fixed at two.) If the difference is not increasing, enter 0 into the answer field. The difference increasing with time. It is increasing at the rate of dollars per hour per year
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