Juan and Pete are on the same salary. 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 the two salary raises, whose salary is higher? Explain your answer.
Juan
first raise = 10%
Second raise = 8%
Pete
first raise = 8%
Second raise = 10%
Let their salary be "100'
Juan salary after raise = 100 * (1 + 0.10) * (1 + 0.08) = 118.8
Pete salary after raise = 100 * (1 + 0.08) * (1 + 0.10) = 118.8
Thus, their both salaries are same because their raise on salary for years is same
To determine whose salary is higher after the two raises, we need to calculate the new salaries for both Juan and Pete.
Let's assume that Juan and Pete have an initial salary of $100.
For Juan:
1. Juan receives a 10% raise, which means his salary increases by 10% of $100, or $10. His new salary becomes $100 + $10 = $110.
2. After a year, Juan receives an 8% raise on his new salary of $110. This means his salary increases by 8% of $110, or $8.80. His new salary becomes $110 + $8.80 = $118.80.
For Pete:
1. Pete receives an 8% raise, which means his salary increases by 8% of $100, or $8. His new salary becomes $100 + $8 = $108.
2. After a year, Pete receives a 10% raise on his new salary of $108. This means his salary increases by 10% of $108, or $10.80. His new salary becomes $108 + $10.80 = $118.80.
Comparing the final salaries, we can see that both Juan and Pete have the same salary of $118.80. Therefore, after the two salary raises, Juan and Pete have equal salaries.