SOLUTION: Justin is considering two job offers. In both cases, he will earn $47,500 for his first year of work. Kaley’s is willing to offer annual pay raises of 4% each year. Hareway is wil

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Question 1103038: Justin is considering two job offers. In both cases, he will earn $47,500 for his first year of work. Kaley’s is willing to offer annual pay raises of 4% each year. Hareway is willing to offer a raise of $1500 each year. Which job will pay better for the 4th year? How much more?
Answer by diana_granger(2) About Me  (Show Source):
You can put this solution on YOUR website!
Kaley's pay in 4th year:
($47,500)(1.4)(1.4)(1.4)=$130,340
Hareway's pay in 4th year:
$47,500+(3)($1500)=$5,200
Clearly, Kaley's pay is higher than Hareway's pay.
By ($130,340-$5,200)=$125,140