Answer:
It represents that Carmela's salary increases 5 percent each year.
Step-by-step explanation:
Her salary is modeled by the following function:
[tex]C_{n+1} = 1.05C_{n}[/tex]
So
[tex]\frac{C_{n+1}}{C_{n}}= 1.05[/tex]
This means that for each year, Carmela's next year salary is going to 1.05 of this year.
So, in the context of this problem, the number 1.05 represents that Carmela's salary increases 1.05-1 = 0.05 = 5 percent each year.