Catstuff. com adjusts salaries based on changes in its stockprice, which has increased consistently at one-eighth of its value per year. Yearly raises are the same fraction of the current salary as the yearly fractional change in stock prices. Kesha currently earns $93,312 per year at Catstuff. com Find last year's salary, the salary in 2 years, and the salary 3 years ago.

A Year Ago = $82,944

Two Years Ago = $73,728

Three Years Ago = $65,536

Explanation:

Catstuff.com has increased salaries consistently at one-eighth of its value per year.

So that means that this year's salary, is a 1/8th increase in the salary from last year.

Assuming last year is x then the formula would be

Note that 1/8 = 0.125

93,312 = (1 + 0.125)x

x = 93,312/ 1. 125

x = $82,944

$82,944 was last year's salary.

Two Years Ago.

Now that we have the salary for last year, we can use that salary for the year before it,

1.125x = 82,944

x = 82,944 / 1.125

x = $73,728

$73,728 was the salary 2 years ago.

Three Years Ago.

Again, we have the salary from 2 years ago so we can calculate for 3 years ago,

1.125x = 73,728

x = 73,728/1.125

x = $65,536

$65,536 was Kesha's salary 3 years ago.

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