Question: Pay raises If you are an employee, would you rather be given a raise of $1000 at the end of each year (plan I) or a raise of $300 at the end of each 6-month period (plan II)? Consider the table for an employee whose base salary is $20,000 per year (or $10,000 per 6-month period), and answer parts (a)-(g).
(a) Find the sum of the raises for plan I for the first 3 years.
(b) Find the sum of the raises for plan II for the first 3 years.
(c) Which plan is better, and by how much?
(d) Find the sum of the raises in plan I for 5 years.
(e) Find the sum of the raises in plan II for 5 years.
(f) Which plan is better, and by how much?
(g) Do you want plan I or plan II?