The first federal minimum wage was established in 1938 at $0.25 per hour. Since then, the hourly federal minimum wage has been periodically increased as shown in the graph below. Unadjusted Federal Minimum Wage, 1938-2020 The line graph below displays the Unadjusted Federal Minimum Wage and Adjusted Federal Minimum Wage in Constant 2020 Dollars from 1985 to the present. Federal Minimum Wage, 1985-2020 Hourly Wage in Dollars 8.00 6.00 10.00 9.00 8.00 4.00 2.00 0.00 1930 1940 1950 1960 1970 1980 1990 2000 2010 2020 Year 7.00 6.00 5.00 4.00 3.00 2.00 1.00 1. Calculate the average growth rate of the hourly federal minimum wage from $0.25 in 1938 to $7.25 in 2020. Round to three decimal places. Write a sentence that interprets this result in context. (5 pt) Year 1976 1995 2016 2020 Minimum Wage in Unadjusted Dollars $2.30 $4.25 $7.25 $7.25 1 1985 1990 1995 2000 2005 2010 2015 2020 Unadjusted Federal Minimum Wage ---Adjusted Federal Minimum Wage 3. Describe the general trend of the Unadjusted Federal Minimum Wage from 1985 to 2020. Respond in complete sentences. (4 pt) 4. The unadjusted federal minimum wage has been a constant value of $7.25 since 2009. What trend do you observe in the adjusted federal minimum wage from 2009 to 2020? Explain why this trend occurs. Respond in complete sentences. (6 pt) The table below displays the Unadjusted Federal Minimum Wage and Adjusted Federal Minimum Wage in Constant 2020 Dollars for select years. Year Unadjusted Federal Minimum Wage Adjusted Federal Minimum Wage in Constant 2020 Dollar 1985 $3.35 $8.19 Year 1976-2020 Inflation Rate Between Given Year and 2020 360.20% 1995-2020 2016-2020 1990 $3.80 $7.69 69.87% 6.75% 2000 $5.15 $7.87 2010 $7.25 $8.63 2. Adjust each year's minimum wage into 2020 dollars using the given inflation rates. Round values to two decimal places. Show your work in the space provided. (3 x 5pt = 15 pt) 2020 $7.25 $7.25 5. 1976 1995 Use the values in the table above to interpolate/extrapolate (whichever is appropriate) the value of minimum wage in adjusted 2020 dollars for each the years requested. Round intermediate values to three decimal places if needed. Round the final answer to two decimal places. (2 x 8 pt 16 pt) a. Predict adjusted wages in 2005 Does this prediction require interpolation or extrapolation? 2016 b. Predict adjusted wages in 2042 Does this prediction require interpolation or extrapolation?