Interest rates

[Foriegn2math]

Question: find the final hourly wage if an $8 starting wage is increased by 5% each year for seven years?

 

[BigBeachBanana]

It's helpful to write out the increases each year and observe the pattern.
[math]\text{Time 0}=8\\ \text{Year 1}=8(1.05)\\ \text{Year 2}=8(1.05)(1.05)=8(1.05)^2\\ \text{Year 3}=8(1.05)^2(1.05)=8(1.05)^3\\ \vdots\\ \text{Year 7}=?[/math]
What pattern do you see?