document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1039982>Question 1039982</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Hi<BR>\n" );
document.write( "sam is currently paid an allowance of 500 dollars per year.his father gives him a choice of a 3 percent rise now or a 1 percent rise now, a 2 percent rise in a years time and then a 3 percent rise in 2 years time.\r<BR>\n" );
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document.write( "what is the best choice to earn him the most money after 3 full years.\r<BR>\n" );
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document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #654825 by </B><A HREF=/tutors/aboutme.mpl?userid=Theo><B>Theo(13342)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=Theo><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/cgi-bin/show-face.mpl?user=Theo><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=654825\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> here's the yearly breakout.\r<BR>\n" );
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document.write( "                      3% now             1% now 2% in a year 3% in two years.\r\n" );
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document.write( "first year             515                    505\r\n" );
document.write( "second year            515                    515.1\r\n" );
document.write( "third year             515                    530.553\r\n" );
document.write( "fourth year +          515                    530.553\r\n" );
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document.write( "his cumulative earnings are:\r\n" );
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document.write( "first year            515                     505\r\n" );
document.write( "second year           1030                    1020.1\r\n" );
document.write( "third year            1545                    1550.653\r\n" );
document.write( "fourth year           2060                    2081.206\r\n" );
document.write( "fifth year            2575                    2611.759\r\n" );
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document.write( "in the long run, he's better off getting 1%, then 2%, then 3%, because the cumulative earnings will be greater the longer he gets the allowance.\r<BR>\n" );
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document.write( "in the short run, the 3% right away looks better.\r<BR>\n" );
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document.write( "it really depends on how long he'll be earning the allowance.<BR>\n" );
document.write( "if for only two years, then the 3% right away looks better.<BR>\n" );
document.write( "if for 3 years or more, then the 1% followed by 2% followed by 3% looks better.\r<BR>\n" );
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document.write( "after 3 full years, he will have more cumulative earnings with the 1% followed by 2% followed by 3%, so that looks like the better option.\r<BR>\n" );
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document.write( " </SPAN>\n" );
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