Expert: Sherman D. - 4/17/2009

Question
Thank you very much for your help!

Pete Rossini has just graduated from college with honors.  He has been offered four jobs with the following pay provisions:

1.  $54,000.00 for the first year
2.  $1,071.00 per week for the first year
3.  $4070.00 per month for the first year
$.  $4,000.00 per month for the first 6 months and an increase of 10% for the last 6 months

Which of the above offers will give Pete Rossini the greatest income for the first year?

1
2
3
4
5. Not enough information is given

Answer
1.)
$54,000 for the first year

2.)
$1071.00 per week for the first year
1071 * 52 = $55,692 for the first year

3.)
$4,070.00 per month for the first year
4070*12 = $48840 for the first year

4.) If you wonder why i used 1.10 instead of .10, its because your saying 4000(.10) + 4000
(4000*6) + (4000 * 1.10 * 6) = 24000 + 26400 = 50400 for the first year


so you have

1.) $54,000
2.) $55,692
3.) $48,840
4.) $50,400

as you can see the answer is 2.) $55,692