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Mathematical Excursions (MindTap C...

4th Edition
Richard N. Aufmann + 3 others
ISBN: 9781305965584

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BuyFindarrow_forward

Mathematical Excursions (MindTap C...

4th Edition
Richard N. Aufmann + 3 others
ISBN: 9781305965584
Textbook Problem

Your employer agrees to give you a 5 % raise after 1 year on the job, a 6 % raise the next year, and a 7 % raise the following year. Is your salary after the third year greater than, less than, or the same as it would be if you had received a 6 % raise each year?

To determine

To calculate: The salary and whether the salary after the third year would be greater than, less than or same if one had received a 6% raise each year. An employer agrees to give 5% raise after a year on the job, then 6% raise next year and 7% raise the following year,

Explanation

Given Information:

An employer agrees to give 5% raise after a year on the job, then 6% raise next year and 7% raise the following year

Calculation:

Total percent of increase in raise in last 3 years

5%+6%+7%=18%

After third year the raise would be 8 percent, since every year the raise is consecutive

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