A worker has four different job offers, each with a contract for seven years. Assuming the job descriptions are identical, which offer will allow the worker to earn the least over seven years? a starting salary of $125,000 with a 2% increase each year a starting salary of $110,000 with a 3% increase each year a starting salary of $98,000 with a 8% increase each year a starting salary of $105,000 with a 4% increase each year

Question

Mathematics

Chaz Cummings

1 February, 15:36

A worker has four different job offers, each with a contract for seven years. Assuming the job descriptions are identical, which offer will allow the worker to earn the least over seven years? a starting salary of $125,000 with a 2% increase each year a starting salary of $110,000 with a 3% increase each year a starting salary of $98,000 with a 8% increase each year a starting salary of $105,000 with a 4% increase each year

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Skylar Cooley · Answer 1

The sum will be for a geometric sequence over 7 years, and the general formula will be:S = a[ (1+r) ^7 - 1]/rFirst case: (125,000) (1.02^7 - 1) / 0.02 = $929,285.4Second case: (110,000) (1.03^7 - 1) / 0.02 = $842,870.8Third case: (98,000) (1.08^7 - 1) / 0.02 = $874,434.7Fourth case: (105,000) (1.04^7 - 1) / 0.02 = $829,320.9Therefore, the first choice will be the best option.