Question

which salary plan would you prefer a) you are offered job A with a starting salary of $24,000.each year for 10 years you will be given a 4% raise. b) you offered job B with a starting of $24000. each year for 10 years you will be given a $1000 raise.

Answer 1

Plan A: geometric series with a = 24000 , r = 1.04
sum(10) = 24000(1.04^10 - 1)/.04 = $288 146.57
plan B: arithmetic sequence: a = 24000, d = 1000
sum(10) = (10/2)(48000 + 9000) = $285 000.00

what do you think?

Answer 2

At 4%, the first year raise will be $960, second will be $998.40, third year, $10,383.36. Take it from there.