Quiz
By HUGH GRAY LIEBER and LILLIAN R. LIBBER
SUPPOSE you had the choice of The following two jobs:—
Job 1: Starting with an Annual salary of $1000, And a $200 increase every year.
Job 2: Starting with an Annual salary of $1000 And a $50 increase every Six months.
In all other respects,
The two jobs are exactly alike.
Which is the better offer?
Think carefully and
Decide on your answer
Before turning this page.
Did you say Job 1 is better?
And did you reason as follows?
Since Job 2 has an increase
Of $50 every six months,
It must have an annual increase of $100
And therefore it is not as good
As Job 1 which has
An annual increase of $200.
Well, you are wrong!
For, examine carefully
The earnings written out below:
| Expected | First half of year | Second half of year | Total for the year | |
|---|---|---|---|---|
| First Year | Job 1 | $500 | $500 | $1000 |
| Job 2 | 500 | 550 | 1050 | |
| Second Year | Job 1 | 600 | 600 | 1200 |
| Job 2 | 600 | 650 | 1250 | |
| Third Year | Job 1 | 700 | 700 | 1100 |
| Job 2 | 700 | 750 | 1450 | |
| Fourth Year | Job 1 | 800 | 800 | 1600 |
| Job 2 | 800 | 850 | 1650 |
Note that: —
(1) Job 1 pays $200 more each year Than it did the previous year.
(2) Job 2 pays $50 more every half-year than it did during the previous half-year.
All this is in accordance with The promises originally made.
And yet
Job 2 brings in $50 more every year Than Job 1 does.
And you can easily see that This will continue to be true No matter what number of years Is considered.
That is, of course,
Unless
The Income Tax People Do something to Upset
These calculations.
