Chapter 12.3, Problem 103DW

Critical Thinking You are interviewing for a job and receive two offers for a five-year contract:

A: $\$40,000$ to start, with guaranteed annual increases of $6\%$ for the first 5 years

B: $\$44,000$ to start, with guaranteed annual increases of $3\%$ for the first 5 years

Which offer is better if your goal is to be making as much as possible after 5 years? Which is better if your goal is to make as much money as possible over the contract (5 years)?