Company A offers you an initial salary of $150,000 with annual raises of 10% for the...

Company A offers you an initial salary of $150,000 with annual raises of 10% for the foreseeable future. Company B offers you $180,000 with annual raises of 8% for the foreseeable future.

A.) How many years will it take for the A salary to equal the B salary?

B.) How many years will it take for the total dollars received from A to equal the total dollars received from B?

Expert Solution

Years	Company A		Company B
Years	Salary [Previous Salary*(1.1)]	Total $ received [Current Salary+All Previous Salaries]	Salary [Previous Salary*(1.08)]	Total $ received [Current Salary+All Previous Salaries]
1	150000	150000	180000	180000
2	165000	315000	194400	374400
3	181500	496500	209952	584352
4	199650	696150	226748.16	811100.16
5	219615	915765	244888.0128	1055988.173
6	241576.5	1157341.5	264479.0538	1320467.227
7	265734.15	1423075.65	285637.3781	1606104.605
8	292307.565	1715383.215	308488.3684	1914592.973
9	321538.3215	2036921.537	333167.4379	2247760.411
10	353692.1537	2390613.69	359820.8329	2607581.244
11	389061.369	2779675.059	388606.4995	2996187.743
12	427967.5059	3207642.565	419695.0195	3415882.763
13	470764.2565	3678406.822	453270.621	3869153.384
14	517840.6822	4196247.504	489532.2707	4358685.655
15	569624.7504	4765872.254	528694.8524	4887380.507
16	626587.2254	5392459.48	570990.4406	5458370.948
17	689245.948	6081705.427	616669.6758	6075040.623

A) 11 years B) 17 years

jeff jeffy answered 3 hours ago

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