Once again, career choice time! Pitting Olives is offering you a starting salary of $65,000 with a 5% raise annually. Whole Olive Foods wants to offer you $68,000 with a 3% annual raise. What will be the salaries at each in five years? Who will you want to work for?

Question

Marcelo Bright

Mathematics

26 February, 00:57

Once again, career choice time! Pitting Olives is offering you a starting salary of $65,000 with a 5% raise annually. Whole Olive Foods wants to offer you $68,000 with a 3% annual raise. What will be the salaries at each in five years? Who will you want to work for?

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Answers (1)

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Lyons · Answer 1

Part A:

In 5 years, if you work at Pitting Olives you will be making $82,958.30 annually, while if you work at Whole Olive Foods you will be making $78,830.64 annually.

Part B:

You will want to work for Pitting Olives.

Step-by-step explanation:

Part A:

Using the formula f (x) = y (1 + %) ^x, you can create the two solving formulas

f (x) = 65,000 (1.05) ^5 and f (x) = 68,000 (1.03) ^5

f (x) = 82,958.30 f (x) = 78,830.64

Part B:

You will want to work for Pitting Olives, because the annual increase is higher meaning in the long run you will make more money than if you worked at Whole Olives, even if the starting salary is less.