Solve the Problem $\$ 2,011,827$ B Geometric; $\$ 1,752,496$ B) A Geometric; $\$ 2,011,827$

question 65

Multiple Choice

Solve the problem.
-The yearly salary for job A is $57,000 initially with an annual raise of $3,200 every year thereafter. The yearly salary for job B is $53,000 initially with an annual raise of 5%.
a. Consider a sequence representing the salary for job A for year n. Is this an arithmetic or geometric Sequence? Find the total earnings for job A over 20 years. Round to the nearest dollar.
b.Consider a sequence representing the salary for job B for year n. Is this an arithmetic or geometric Sequence? Find the total earnings for job B over 20 years. Round to the nearest dollar.

• A) a. Geometric; \(\$ 2,011,827\)
• b. Geometric; \(\$ 1,752,496\)
• B) a. Geometric; \(\$ 2,011,827\)
• b. Arithmetic; \(\$ 1,643,500\)
• C) a. Arithmetic; \(\$ 1,748,000\)
• b. Geometric; \(\$ 1,752,496\)
• D) a. Arithmetic; \(\$ 1,748,000\)
• b. Arithmetic; \(\$ 1,643,500\)

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Definitions:

Overnight Eurodollar Loans

Short-term loans between banks that use US dollars held in banks outside the United States, to be repaid the next business day.

Relative Purchasing Power

A concept that compares the ability of entities to buy the same goods or services with a specific amount of currency in different environments or time periods.

Parity

In finance, parity refers to the equality of two or more securities, rates, or related financial instruments in terms of price or value.

Absolute Purchasing Power Parity

A theory that suggests that prices of goods and services should equalize across countries over time when measured in a common currency, due to exchange rate changes.