Answer:
The salary after 2 years is $8.83 per hour.
The salary will be more than $10 per hour in 8 years.
Explanation:
To calculate a 2.5% raise, we have to multiply the original salary by 1.025:
For the second year, the salary would be:
For the third year, the salary would be:
Notice that a pattern emerges: To calculate the salary on the n-th year, we have to multiply the original salary by 1.025 n times. In other words, the formula to calculate the salary for the n-th year is:
This way, the salary after two years would be:
$8.83
To find when will the salary be over $10 per hour, we equal our equation to 10, solve for n and ceil to the nearest integer, as following:
This way, the salary will be more than $10 per hour in 8 years.