Solve the Problem $\$ 20,000$ With Guaranteed Annual Raises Of $\$ 700$

question 24

Multiple Choice

Solve the problem.
-Jarrod has a choice between two job offers. Job A has an annual starting salary of $\$ 20,000$ with guaranteed annual raises of $\$ 700$ for the next four years, while Job B has an annual starting salary of $\$ 19,000$ with guaranteed annual raises of $\$ 2600$ for the next four years. Compare the fifth partial sums for each sequence to determine which job would pay Jarrod more over the next 5 years.

• A) Job B pays \(\$ 22,500\) more over the next 5 years.
• B) Job B pays \(\$ 14,000\) more over the next 5 years.
• C) Job A pays \(\$ 1000\) more over the next 5 years.
• D) Job A pays \(\$ 7400\) more over the next 5 years.

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Definitions:

Maximum Price

The highest price a consumer is willing to pay for a good or service or the highest price that can be charged in a market.

Pump Division

A specialized unit within a company focused on the manufacture and sale of pumps.

Valve Division

A segment within a company that specializes in the production and sale of valves.

Net Operating Income

A company's income after operating expenses have been deducted but before income taxes and interest are subtracted.