Math Is Fun Forum

sezza

Guest

Patterns and sequences

Which of the following schemes would earn more IN YEAR FIVE and how much more?

Scheme A; Salary of $30000 in year 1 with each subsequent years salary being 105% of the previous year. (round up to whole dollars)

Scheme B; Salary of $20000 in year 1 with each subsequent years salary being 130% of the previous year

The answer is B by $20656

Please show workings
Thank you!

mathsyperson

Moderator

Registered: 2005-06-22

Posts: 4,900

Re: Patterns and sequences

You just need to work out each salary in year 5 and then compare them.

For Scheme A, each year's salary is 1.05 x (salary the year before).

So:

Year 1: 30000
Year 2: 31500
Year 3: 33075
Year 4: 34729 (rounded up)
Year 5: 36466 (rounded up again)

The salary for Scheme B can be worked out in a similar way.

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Why did the vector cross the road?
It wanted to be normal.