Engineering News
October 4, 2004 Vol 75, no. 6F

Brain Teaser: ANSWER

You land a job and the boss offers you a choice between A) $4,000 for your first year of work, and a raise of $800 for each year thereafter, or B) $2,000 for your first six months of work, and a raise of $200 every six months thereafter. If you plan to stay there for six years, which offer would you take and why?

Answer:
Surprisingly, the second offer is much better than the first one. If you accept it, you will earn exactly $200 more each year than you would on the other basis of payment. The following chart shows your total earnings, on the basis of both offers, for each of the first six years.
1) 4,000 4,200
2) 4,800 5,000
3) 5,600 5,800
4) 6,400 6,600
5) 7,200 7,400
6) 8,000 8,200
No one got this right.


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