Juan and Pete are on the same salary. Juan receives a 10% raise followed by an 8% raise a year later. Pete receives an 8% raise followed by a 10% raise a year later. After the two salary raises, whose salary is higher? Explain your answer.

Answer 1

Juan
first raise = 10%
Second raise = 8%

Pete
first raise = 8%
Second raise = 10%

Let their salary be "100'

Juan salary after raise = 100 * (1 + 0.10) * (1 + 0.08) = 118.8

Pete salary after raise = 100 * (1 + 0.08) * (1 + 0.10) = 118.8

Thus, their both salaries are same because their raise on salary for years is same