Answer to Question #204377 in Math for Arvin Shopon

Question

In a moderate wage settlement, it was agreed that the wages of workers in the sector would be increased by 2.8% over the next four years. What percentage of wages increase on average per year?

Answer 1

Let $p=$ average annual percent of wagws increase

Then

$$(1+\dfrac{p}{100})^4=(1+\dfrac{2.8}{100})$$

$$p=100(\sqrt[4]{1.028}-1)$$

$$p\approx0.6928\%$$

Wages increase on average per year is $0.6928\ \%$ per year.