A woman is offered two jobs, one starting at $120,000 with constant annual raises of $7,000, and the other starting at $100,000 with annual raises of 8%.

Question

1. Set up a pair of series that models the above situation.
2. What would be her salary at each job through the end of the sixth year?
3. What would be her accumulated earnings at each job through the end of the sixth year?
4. How many years would it be before the salary of the second job exceeds the first?
5. How many years would it be before the accumulated earnings of the second job exceed the first?

Answer 1

1. y = 7000x + 120,000

y = 100,000(1.08)^x

The rest is on you.