Markeeta, a recent college graduate, received two job offers. Company A offered her an initial salary of $38,300 with guaranteed annual increases of $2,200/year for the first 5 yr. Company B offered an initial salary of $40,200 with guaranteed annual increases of $1,600 per year for the first 5 yr.
Which company is offering a higher salary for the fifth year of employment?

Question

Markeeta, a recent college graduate, received two job offers. Company A offered her an initial salary of $38,300 with guaranteed annual increases of $2,200/year for the first 5 yr. Company B offered an initial salary of $40,200 with guaranteed annual increases of $1,600 per year for the first 5 yr. ​
Which company is offering a higher salary for the fifth year of employment?
​

Quizplus · Accepted Answer

Company A's fifth year salary is $48,100 ($38,300 + 4*$2,200), and Company B's is $46,200 ($40,200 + 4*$1,600), making Company A the higher offer for the fifth year.

Markeeta, a Recent College Graduate, Received Two Job Offers