Question

Adam is hired at a salary of $50000 per year but will earn an annual increase of 2.5% per year. Brock is hired at the same time with a salary of $ 50000 per year but will have a $3000 per year increase. Who will make more in year 10 and by how much?

Answer 1

A=50000(1.025^t), B=50000+3000t

A(10)=$64004.23, B(10)=$80000

So Brock will be earning $15995.77 more than Adam in the tenth year.