Multiple choice general knowledge sports

A company is preparing two plans of yearly salary increases for its employees.Plan A : Starting salary is \$100. to be raised \$20 each year.Plan B : Starting salary is \$100, to be raised \$5 every 6 months.Which plan would be best for you?

  1. A

  2. B

  3. none

  4. both
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Let's calculate the total salary after 2 years: Plan A gives $100 + $20 + $20 = $140. Plan B gives $100 + $5 + $5 + $5 + $5 = $120 for year 1, then $120 + $5 + $5 + $5 + $5 = $140 at year 2 start, reaching \$160 by year 2 end. Plan B's semi-annual raises compound better, giving \$210 in year 2 versus Plan A's $140.

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