Jennifer just got a new job. The starting salary for the new

Last updated: 8/10/2022

Jennifer just got a new job. The starting salary for the new job is $45,000. The job comes with a choice of two promotion packages. A promotion package is a plan that explains in writing how much Jennifer will make in salary if she continues to do a good job at the company. Jennifer has to decide which of the two promotion packages she wants. The first package increases her salary by 3% each year. The second package increases her salary by $2000 each year. Jennifer plans to stay with the company for 5 years. Which option should she choose? There is not enough information to determine which package is better. Both options would yield the same salary after 5 years. The 3% increase per year yields a higher salary after 5 years. The $2000 increase per year yields a higher salary after 5 years.