Final answer:
After five years, the average worker in Canada will have a higher productivity level than the average worker in the UK. The productivity level in Canada will be $31.53 per hour, and for the UK, it will be $28.98 per hour. The difference between the two productivity levels will be $2.55.
Step-by-step explanation:
The question requires analyzing the productivity growth of average workers in Canada and the United Kingdom over a period of five years. The average productivity level for Canadian workers is initially $30 per hour and is growing at 1% per year. Conversely, the productivity level for the UK workers starts at $25 per hour and experiences a 3% annual growth rate. After doing the calculations:
- The productivity level for Canada after 5 years = $30 * (1 + 0.01)^5
- The productivity level for the UK after 5 years = $25 * (1 + 0.03)^5
Calculating these:
- Productivity in Canada after 5 years = $30 * 1.051 = $31.53
- Productivity in the UK after 5 years = $25 * 1.159 = $28.98
Thus, after five years, the average worker in Canada will still have a higher productivity level than that of the UK, and the difference in productivity levels will be $31.53 - $28.98 = $2.55.