SOLUTION: Would you rather receive a 7% raise followed by a 2% raise or a 2% raise followed by a 7% raise? Explain.

Question 237913: Would you rather receive a 7% raise followed by a 2% raise or a 2% raise followed by a 7% raise? Explain.
Answer by Alan3354(69443) (Show Source): You can put this solution on YOUR website!
Would you rather receive a 7% raise followed by a 2% raise or a 2% raise followed by a 7% raise? Explain.
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If you make $D per week:
D*1.07 = 1.07D
Then, 1.07D*1.02 = 1.0914D
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With 2% first, it's the same amount.
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If they're close in time, there's no difference.
But, if you get the 7% first and make more for some amount of time, you'll get more.
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