Mr. Nicholson accepts a job that pays an annual salary of $60,000. In his employment contract, he is given the option of choosing a) an annual raise of $3,500 or b) an annual raise of 5% of his current salary.
Model each of Mr. Nicholson’s salary options with a recursive sequence that includes his potential earnings for the first three years of employment.
According to the first three terms of each sequence, can you conclude that there is a significant difference in Mr. Nicholson’s potential earnings with each increase option? Use complete sentences to explain your conclusion.