# Assume that you are negotiating a new three year contract. Are you better off with yearly raises of 3%,1% and then 2% or with yearly raises of 2%,1%, then 3%? Explain

1
by bh3a3rayashini

2016-02-27T10:22:21+05:30
I Can Go Either Of Them Because The Amount i will get is the same
Lets take example,
Let the money of the contract be 10000
First taking yearly raises of 3%, 1%, and then 2%
So for first year
I   = 10000 * 3 * 1/100
= 300
A = 10000+300 = 10300
For Seccond Year
I  = 10300 * 1 * 1/100
= 103
A = 10300 + 103
= 10403
For Third Year
I = 10403 * 2 * 1/100
= 208.06
Final Amount = 10403 + 208.06
= 10611.06

Now,
Taking
yearly raises of 2%, 1%
and then 3%
For First Year
I = 10000 * 2 *1/100
= 200
A = 10000 + 200
= 10200
For Second Year
I = 10200 * 1 * 1/100
= 102
A = 10200 + 102
= 10302
For Third Year
I = 10302 * 3 * 1/100
= 309.06
Final Amount = 10302 + 309.06
= 10611.06

As The Final Amount Of Both Are Same We can Go With Either Of Them
Hope U Understood Plz Mark This As A Brainliest If u r Satisfied