Question

After graduating from college, Carlos receives two different job offers. Both pay a starting salary of $66000 per year, but one job promises a $3300 raise per year, while the other guarantees a 4% raise each year.

Complete the tables below to determine what his salary will be after t years.
Round your answers to the nearest dollar.

t
t
years 1 5 10 15 20
Salary with $3300 raise per year


t
t
years 1 5 10 15 20
Salary with 4% raise per year

Answer 1

Salary with $3300 raise per year:

t (years) Salary

1 $69300

5 $82600

10 $95900

15 $1092000

20 $1225000

Salary with 4% raise per year:

t (years) Salary

1 $68640

5 $83833

10 $102219

15 $124869

20 $152947

Note: The calculations for the 4% raise are done as follows:

Year 1: 66000 * 1.04 = $68640

Year 5: 66000 * 1.04^5 = $83833

Year 10: 66000 * 1.04^10 = $102219

Year 15: 66000 * 1.04^15 = $124869

Year 20: 66000 * 1.04^20 = $152947

Explanation: