Mr. Jackson has received two salary offers at two different companies. Company A pays $40,000 per year with an increase of $2,000 each year after the first year. Company B pays $30,000 per year with an increase of $5,000 each year after the first year. Which statement is true about Mr. Jackson’s potential salary in 5 years at each company?A He will earn $2,000 more with Company AB He will earn $2,000 more with Company BC He will earn $5,000 more with Company AD He will earn $5,000 more with Company B
Accepted Solution
A:
Answer:Option BHe will earn $2,000 more with Company BStep-by-step explanation:Company AFirst year-40,000Second year=40000+2000=42000Third year=42000+2000=44000Fourth year=44000+2000=46000Fifth year=46000+2000=48000Company BFirst year=30000Second year=30000+5000=35000Third year=35000+5000=40000Fourth year=40000+5000=45000Fifth year=45000+5000=50000Difference after five years is 50000-48000=2000Therefore, company B would have given him $2000 more than company company A