Problema Solution
Suppose you are offered two jobs. One pays $30,000 the first year with annual raises of $2000 each year. The second offers a starting salary of $27,000 and raises of 8% each year. During your tenth year, what would your yearly salary be from (a)the first job? (b) the second job?
Answer provided by our tutors
The first one is an ARTHEMTIC PROGRESSION
Tn = a + (n-1)d
where Tn is the salary at any year, n
a is the initial salary
n is the number of years
d is the $2000 a year bonus
T(10) = 30000 + (10-1)2000
T(10) = 30000 + 18000
T(10) = $48000
The second one is a geometric progression
Tn = ar^n
where Tn is the salary at any year, n
a is the starting salary
r is the increase factor
n is the number of years
So
T(10) = 27000 x 1.08^10
T(10)= $58 290.97
As 58 290.97>48000, then the second option would pay more by the tenth year