Pay up
Smith and Jones each land a 20-year job at Dewey, Cheatham & Howe.
Smith is to be paid yearly, with a starting salary of $20,500 per year, and receive a $1,000 raise each year.
Jones is to be paid half-yearly, with a starting salary of $10,000 per half-year, and receive a $500 raise each half-year.
Who made the better bargain concerning pay?
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1 solution
First year: Smith 20,500, Jones 10,000 + 10,500 = 20,500
Second year: Smith 21,500, Jones 11,000 + 11,500 = 22,500
Third year: Smith 22,500, Jones 12,000 + 12,500 = 24,500
(etc)
Smith's salary increases by 1,000 per year, Jones' salary increases by 2,000 per year. Jones made the better bargain.