Select the correct answer from each drop-down menu.
1 answer:
You might be interested in
Answer:
The least attractive offer is the fourth case a starting salary of $105,000 with a 4% increase each year
Step-by-step explanation:
I attach the full question below
This question can be modeled as a geometric sequence over seven years
Formula
and the general formula will be:
R = k[(1+i)^n - 1]/i
Where
i represents the increase in percentage annualy,
n the number of years
k the initial amount at the start of the period
First case
(125,000)(1.02^7 - 1)/0.02 = $929,285.4
Second case
(110,000)(1.03^7 - 1)/0.03 = $842,870.8
Third case
(98,000)(1.08^7 - 1)/0.08 = $874,434.7
Fourth case
(105,000)(1.04^7 - 1)/0.04 = $829,320.9
The least attractive offer is the fourth case a starting salary of $105,000 with a 4% increase each year
