Question

Mike takes a job with a starting salary of $50,000. He is given two choices for a raise. Plan A give him a $5,000 raise every year. Plan B give him a 6% raise every year. After 30 years, which plans will have made mike the most money?

PLEASE REPLY ITS FOR PRECALCULUS !!!

Answer 1

After 30 years, Plan B will have made Mike the most money with a total of $287,150.

Step-by-step explanation:

To determine which plan will have made Mike the most money after 30 years, we need to compare the total amount of money he would earn under each plan.

Plan A): Mike receives a $5,000 raise every year.

So, after 30 years, he would have earned:

$50,000 + ($5,000 * 30) = $50,000 + $150,000

= $200,000

Plan B): Mike receives a 6% raise every year.

To calculate his salary after 30 years, we need to calculate the compound interest on his initial salary:

$50,000 * (1 + 0.06)^30 = $50,000 * 5.743

$287,150

So, Plan B will have made Mike the most money after 30 years, with a total of $287,150.