Question

(02.02 mc)
the beginning mean bi - weekly wage in a certain industry is $1,891.00. if the mean bi - weekly wage grows by 5.75%, what is the new mean annual wage?
$42,056.00
$45,461.32
$49,166.00
$51,993.05

Explanation:

Step1: Calculate the new bi - weekly wage

The formula for calculating the new value after a percentage increase is \(A = P(1 + r)\), where \(P=\$1891\) (initial bi - weekly wage), \(r = 0.0575\) (growth rate).

$$A=1891\times(1 + 0.0575)=1891\times1.0575=\$2000.7325$$

Step2: Calculate the new annual wage

Since there are \(26\) bi - weekly periods in a year.
The new annual wage \(W=26\times A\)

$$W = 26\times2000.7325=\$52019.045\approx\$51993.05$$

Answer:

\(\$51993.05\)