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.

dumbcow · Answer

its actually the other way around
adding 1000 each year is Arithmetic
adding 3% is like multiplying by 1.03 each year (Geometric)

For the Arithmetic:
a1 = 25,000,  d=1000
a5 = 25,000 + 1000(5-1) = 29,000

For geometric:
a1 =25,000, r = 1.03
a5 = 25,000(1.03)^(5-1) = 28,137

So in short term, getting 1000 each year is better

anonymous · Answer

lol good thing i deleted my answer to avoid embarassment

anonymous · Answer

DUMB cow is right

dumbcow · Answer

aww i didn't even get a chance to look at it :)

anonymous · Answer

XD

anonymous · Answer

Dumb cow ur amazing thanks soooo much:)