Let’s assume that like the average Penn State grad that you make $50,000 at your initial job. We’ll also assume that you’ll work for 45 years and that your real pay grows at the same rate as real per capita income in the U.S. If the U.S. growth rate does indeed change from 2% to 4%, how much more would you earn per year in your last year of work?Hint: the formula you need here was mentioned when we developed the formula to measure average annual rates of growth.
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