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Juan and Pete are hired at two different companies but at the same starting salary. They are good friends, so they compare notes about their jobs every 3 months. Juan receives a 10% raise followed by an 8% raise a year later. Pete receives an 8% raise followed by a 10% raise a year later.
After all the raises, whose salary ia higher?

Respuesta :

vkaushik20

Answer:  

[tex]\Huge \boxed{\text{They have the same salary.}}[/tex]

Step-by-step explanation:

Let's assume that Juan and Pete both start with a salary of [tex]\$ x[/tex].

After 3 months, Juan's salary increases by 10%, which means his new salary is:

[tex]\large x + 0.1x = 1.1x[/tex]

Meanwhile, Pete's salary increases by 8%, which means his new salary is:

[tex]\large x + 0.08x = 1.08x[/tex]

After another year (12 months), Juan's salary increases again by 8%, which means his new salary is:

[tex]1.1x + 0.08(1.1x) = 1.188x[/tex]

And in the same time period, Pete's salary increases by 10%, which means his new salary is:

[tex]1.08x + 0.1(1.08x) = 1.188x[/tex]

Therefore, after all the raises, both Juan and Pete have the same salary of [tex]1.188x[/tex]. So, they both earn the same amount of money.

Despite the fact that their raises were given in a different order, each of them ended up with a salary rise of 21.8% above their starting salary.

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