You have just graduated and are offered a job. The starting salary is $25,000 per year and you are told that you will receive either:

(A) a $1000/yr raise each year [a Geometric Sequence]

or

(B) a 3% raise each year [an Arithmetic Sequence] .

You are to determine which of the two choices would give you a better salary after 5 years.

Question

You have just graduated and are offered a job. The starting salary is $25,000 per year and you are told that you will receive either:

(A) a $1000/yr raise each year [a Geometric Sequence]

or

(B) a 3% raise each year [an Arithmetic Sequence] .

You are to determine which of the two choices would give you a better salary after 5 years.

ksaimouli · Answer

b

anonymous · Answer

Why and do you know how figure it out using formulas

anonymous · Answer

for (a) you need the formula S(n) = n(t1 - tn)/2

anonymous · Answer

and for (B) you need to use the formula $$\S(n) = t(1-r ^{n} )/1-r$$