1. Assume that you are negotiating a new three-year contract. Are you better off
with yearly raises of 3%, 1%, and then 2% or with yearly raises of 2%, 1%
and then 3%? Clearly and completely EXPLAIN your answer.
2. Assume that you are earning $50,000 per year and want a 3.5% raise. A
negotiator offers you instead a one-time bonus of $2000. What are the advantages and disadvantages of her offer?

Question

1. Assume that you are negotiating a new three-year contract. Are you better off
with yearly raises of 3%, 1%, and then 2% or with yearly raises of 2%, 1%
and then 3%? Clearly and completely EXPLAIN your answer.
2. Assume that you are earning $50,000 per year and want a 3.5% raise. A
negotiator offers you instead a one-time bonus of $2000. What are the advantages and disadvantages of her offer?

hasankoush · Answer

This question depends on what end of this contract you are on, are you paying those yearly raises or receiving them?

anonymous · Answer

I'm supposed to be receiving the raise and I'm trying to find out which order is a better deal but it's kind of a confusing question.

hasankoush · Answer

Well, from a non math prospective, thinking of this a worker, I would be more enthused to receive the 3% raise at the end of the three year contract because you would be enjoying the best at last, instead of receiving the best at the beginning of the contract and be less enthused to work because you're not receiving anything that is as good as the first raise.