Median U.S.wages in 2014 were $53,675,compared to the median wage in 1990 of $28,960.What was the average annual increase in median wages over this 24-year period?
A)1.31%
B)2.60%
C)4.50%
D)4.58%

Question

Quizplus · Accepted Answer

To find the average annual increase, we need to use the formula:
Average Annual Increase = (Final Value/Initial Value)^(1/Number of Years) - 1

Plugging in the given values:
Average Annual Increase = ($53,675/$28,960)^(1/24) -1
Average Annual Increase = 0.026 or 2.60%

Therefore, the answer is B) 2.60%.

Median USwages in 2014 Were $53,675,compared to the Median Wage in in 1990