A pro-athlete is offered an eight-year contract with a starting salary of $400,000. She will receive an annual increase of 5% for meeting certain goals. The athlete receives another offer of an eight-year contract with a starting salary of $425,000 and a 4% increase each year for meeting the same goals. Which offer should the athlete take? Explain.

Question

Mathematics

Nathaly Ho

21 April, 16:30

A pro-athlete is offered an eight-year contract with a starting salary of $400,000. She will receive an annual increase of 5% for meeting certain goals. The athlete receives another offer of an eight-year contract with a starting salary of $425,000 and a 4% increase each year for meeting the same goals. Which offer should the athlete take? Explain.

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Answers (2)

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Jaelynn Vincent · Answer 1

400000 (.05) = 20000

20000 (8) = 160000

400000+160000=

560000

425000 (.04) = 17000

17000 (8) = 136000

425000+136000=

561000

Athlete would take the $425,000 with 4%

Beanpole · Answer 2

I believe the 8 year contract which is increased by 5% each year will be $991.08. And the 4% will be $1,007.20. So she would want the 8 year contract with the 4% increase.