Question

11. Sivamani is attending an interview for a job and the company gave two offers to him.
Offer A: 720,000 to start with followed by a guaranteed annual increase of 6% for the
first 5 years.
Offer B: 722,000 to start with followed by a guaranteed annual increase of 3% for the
first 5 years.
What is his salary in the 4" year with respect to the offers A and B?
in the method of GP on step by step ​

Answer 1

Answer:

Step-by-step explanation:

Offer A

a = 720000

6 % increse means = a + (6/100)a = 1.06a

r = 1.06

a , ar , ar² , ar³ , ar⁴

Salary in 4th year = ar³  = 720000(1.06)³ = 857531.52

Offer B

a = 722000

3 % increse means = a + (3/100)a = 1.03a

r = 1.03

a , ar , ar² , ar³ , ar⁴

Salary in 4th year = ar³  = 722000(1.03)³ = 788948.894

Answer 2

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