Consider two job offers with salaries that increase exponent

Consider two job offers with salaries that increase exponentially. For Job A, the salary for year 1 is dollar 29,000 while the salary for year 2 will be dollar 31, 175. How many times as large is the salary in Year 2 compared to the salary in Year 1? The salary in Year 2 is % of the salary in Year 1. What is the percent change in salary from Year 1 to Year 2? % For Job B, the salary for Year 1 is dollar 27, 500 while the salary for Year 2 will be dollar 28, 600. How many times as large is the salary in Year 2 compared to the salary in Year 1? The salary in Year 2 is % of the salary in Year 1. What is the percent change in salary from Year 1 to Year 2? % You expect to keep the job at least 5 years and you want to male as much money as possible over the spent working. Which job should you take? Job A Job B

Solution

Salary for yr1 : 29000
Salary for yr2 : 31175

i) How many times larger?
31175/29000
= 1.075

ii) It is 1.075*100 = 107.5% of year 1

iii) PErc change from yr 1 to yr 2 :
This is given by :
(actual change) / (year 1 salary) * 100
(31175 - 29000) / 29000 * 100
7.5 %

Easier still is to just take the 107.5% and subtract by 100% to get 107.5 - 100 = 7.5%

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yr 1 : 27500
yr 2 : 28600

i) 28600 / 27500 ---> 1.04 times

ii) 1.04 * 100 = 104%

iii) Perc change = 104% - 100% = 4%

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You would obviously prefer job A
because in job A, the starting salary as well as percentage change per year is larger when compared to job 2