I know your trainer has a level from 1-40, but the game doesn't show what level your pokemon are.
I've seen charts listing pokemon levels go up to 40 or 40.5, and sometimes even up to 80. Some of them mention "half-levels".
What's the real answer?
Pokemon-go – How many levels do pokemon have in Pokemon GO
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Related Solutions
Borrowing from @Codestrife's answer here
The rustling leaves usually indicate that there are pokemon near that area. Going and walking around near that area gives you a higher chance to encounter Pokémon.
Keep an eye out for rustling leaves, hinting at where critters may be lurking and simply hang out in a suspected region for the increased chance of an encounter. - Source
Therefore, the reason you don't always see Pokémon in rustling grass is because there is only a higher chance to encounter them there and not a guaranteed chance of encountering them. You just have bad luck when you don't encounter them.
No, it does not. You just have to try and keep track of it yourself. Looking at the number of candy you have might help though. You could also "favorite" every Pokémon you power up to help keep track. See the following pictures, the Bulbasaur hasn't been powered up, but the Squirtle has.
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Best Answer
There is a stat calculator at https://docs.google.com/spreadsheets/d/1wbtIc33K45iU1ScUnkB0PlslJ-eLaJlSZY47sPME2Uk/htmlview?usp=sharing&sle=true# that does various calculations for pokemon to work out among other things max stats.
In that spreadsheet the pokemon level can go up to 40.5. I believe that this terminology is used because 40 is the highest player level and your pokemon max level is tied to your character level. Each character level up allows you to boost your pokemon twice which is why the half level terminology is used here.
Obviously the number for the level is a relatively arbitrary one and you could as easily use just whole numbers as would be more traditional to get a max level of 80.