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Cake day: June 16th, 2023

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  • That’s not how compound increases are measured.

    We can use the compound interest formula for this.

    A = P * (1 + r) ^ t
    
    • A is the final amount.
    • P is the starting amount (the principal).
    • r is the rate (as a proportion, so 50% would be 0.5).
    • t is the time.

    To figure out the annual increase for the whole time we can plug in what we know and solve for what we don’t:

    7.25 = 0.25 * (1+r) ^ 80
    29 = (1+r) ^ 80 years
    1.043 = 1+r
    0.043 = r
    

    So that’s about 4.3% increase per year over the 80 years.

    Now we can see what we would have as minimum wage if it had continued over the past 15 years:

    A = 7.25 * (1+0.043) ^ 15
    A = 7.25 * 1.043 ^ 15
    A = 7.25 * 1.88
    A = 13.63
    

    So that’s a $13.63 minimum wage.


  • I live in Holland and basically only tip a small amount (like 10%) and only at restaurants. Maybe if it rains when my food is being delivered too.

    Anyway.

    I’m currently on business travel and happy to tip since its money from my soulless corporate employer. It’s going to be a real struggle when I’m on vacation in the US though. 😆