n applicant receives a job offer from two different companies. Offer A is a starting salary of $58,000 and a 3% increase for 5 years. Offer B is a starting salary of $56,000 and an increase of $3,000 per year.

Part A: Determine whether offer A can be represented by an arithmetic or geometric series and write the equation for An that represents the total salary received after n years. Justify your reasoning mathematically. (3 points)

Part B: Determine whether offer B can be represented by an arithmetic or geometric series and write the equation for Bn that represents the total salary received after n years. Justify your reasoning mathematically. (3 points)

Part C: Which offer will provide a greater total income after 5 years? Show all necessary math work. (4 points)

The amount provided by each offer after each year depends on the first

salary and the added amount or percentage series.

Reasons:

The given parameters of the job offers are;

Starting salary of offer A = $58,000

Amount by which the salary increases for 5 years = 3%

The starting salary offer B = $56,000

Amount by which the salary increases per year = $3,000

Part A: The salary amount received in the first month = $58,000

The salary in the second month, aₙ = 58,000 × (1 + 0.03)

a₂ = 58,000 × (1 + 0.03) = 58,000 × (1.03)

The salary in the third month is given as follows;

a₃ = a₂ × (1.03) = 58,000 × (1.03) × (1.03) = 58,000 × (1.03)²

The salary on the nth month is therefore;

aₙ = 58,000 × (1.03)⁽ⁿ⁻¹⁾

The above formula is in the form of the geometric series formula, which is presented as follows;

aₙ = a·r⁽ⁿ⁻¹⁾

Where;

a = The first term = 58,000

r = The common ratio = 1.03

n = The number of years

Therefore;

Offer A can be represented by an arithmetic series

Part B: The first year salary for offer B = $58,000

The salary on the second year, B₂ = 58,000 + 3,000 = 61,000

Salary on the third year, B₃ = 58,000 + 3000 + 3000 = 58,000 + 2 × 3,000

Therefore;

Salary on the nth year, Bₙ = 58,000 + (n - 1)×3,000

The above equation is in the form of aₙ = a + (n - 1)·d

Where;

a = The first term = 58,000

n = The number of years

d = The common difference = 3,000

Therefore;

Offer B can be represented by an arithmetic series

Part C: The income gained on offer A after 5 years, a₅, is given as follows;

a₅ = 58,000 × (1.03)⁽⁵ ⁻ ¹⁾ = 58,000 × 1.03⁴ ≈ 65,279.51098

The income gained on offer A after 5 years ≈ $65,279.51098

On offer B, we have;

a₅ = 58,000 + (5 - 1) × 3,000 = 70,000

The income gained on offer B after 5 years = $70,000

Therefore;

Learn more about arithmetic and geometric series here:

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