Started By
Message
Which salary raise would you choose?
Posted on 1/29/15 at 5:49 pm
Posted on 1/29/15 at 5:49 pm
This question was answered by Marilyn vos Savant who supposedly has the highest IQ ever recorded.
The answer is here
quote:
Suppose you have a job offer with a choice of two annual salaries. One is $30,000 with a $1,000 raise every year. The other is $30,000 with a $300 raise every six months. Which option is best in the long run?
—Steve Flowers, Vienna, W.Va.
The answer is here
This post was edited on 1/29/15 at 5:51 pm
15
Posted on 1/29/15 at 5:54 pm to diddydirtyAubie
Id take the 1000..
Posted on 1/29/15 at 5:55 pm to diddydirtyAubie
The obvious answer would seem to be $1000, so I'll take the second option.
Posted on 1/29/15 at 5:57 pm to diddydirtyAubie
Take the $300 and laugh all the way to the bank
Posted on 1/29/15 at 5:58 pm to UMTigerRebel
I'm still trying to comprehend the answer. 
Posted on 1/29/15 at 6:01 pm to diddydirtyAubie
A woman has the highest IQ?
Posted on 1/29/15 at 6:02 pm to diddydirtyAubie
It made sense once I read the answer.
Posted on 1/29/15 at 6:24 pm to UMTigerRebel
quote:
The obvious answer would seem to be $1000, so I'll take the second option.
Posted on 1/29/15 at 6:25 pm to diddydirtyAubie
The answer doesn't make sense to me. It sounds like the sum of the parts adds up to more than the whole. The whole adds up to 30,600 the first year, 31,200 the second year, and 31,800 the third year. Anyone smarter than me care to explain it? The comments on the site say it was poorly worded.
Posted on 1/29/15 at 6:32 pm to bullyintigertown
When you add all 3 years for the $300 increase, you will end up making more than $93000, which is the total earnings for the $1k annual raise.
ETA: Using your math, $93,600 is greater than $93,000.
ETA: Using your math, $93,600 is greater than $93,000.
This post was edited on 1/29/15 at 6:34 pm
Posted on 1/29/15 at 6:37 pm to diddydirtyAubie
Makes sense that the second option is better. The higher the salary gets, the less the discrepancy between the two raises matter, and the extra compounding becomes dominant.
Posted on 1/29/15 at 6:37 pm to UMTigerRebel
Maybe I don't do math very good but, the scenario shown in her example seems off. The show and extra $600 in 2016 and so on.
$1000 raise
2015 - $30000
2016 - $31000
2017 - $32000
2018 - $33000
Total $126000
$300 Raise
2015 - $30300
2016 - $30900
2017 - $31500
2108 - $32100
Total $124800
What am I missing here?
$1000 raise
2015 - $30000
2016 - $31000
2017 - $32000
2018 - $33000
Total $126000
$300 Raise
2015 - $30300
2016 - $30900
2017 - $31500
2108 - $32100
Total $124800
What am I missing here?
Posted on 1/29/15 at 6:41 pm to Tigerswillprevail
Edited because I screwed up the math 
This post was edited on 1/29/15 at 6:46 pm
Posted on 1/29/15 at 6:43 pm to diddydirtyAubie
Option 1 would be 30,000 -> 31,000 -> 32,000, etc.,
Option 2 would be 30,000 -> 30,600 -> 31,200 etc.,
Am I missing something?
Option 2 would be 30,000 -> 30,600 -> 31,200 etc.,
Am I missing something?
Posted on 1/29/15 at 6:43 pm to Tigerswillprevail
quote:
What am I missing here?
Edited, I see your point too.
This post was edited on 1/29/15 at 6:46 pm
Posted on 1/29/15 at 6:44 pm to Tigerswillprevail
30000
31000
32000
33000
34000
(15000+15300)=30300
(15600+15900)=31500
(16200+16500)=32700
(16800+17100)=33900
(17400+17700)=35100
163500 > 160000
31000
32000
33000
34000
(15000+15300)=30300
(15600+15900)=31500
(16200+16500)=32700
(16800+17100)=33900
(17400+17700)=35100
163500 > 160000
Posted on 1/29/15 at 6:52 pm to diddydirtyAubie
quote:
I'm still trying to comprehend the answer.
While they word it odd, I think it's like this
Scenario A Scenario B
Time zero $0 $0
Time 6 months $0 $15,000
Time 12 months $30,000 $15,300
Time 18 months $0 $15,600
Time 24 months $31,000 $15,900
Posted on 1/29/15 at 7:13 pm to diddydirtyAubie
the second one
Posted on 1/29/15 at 7:24 pm to Duke
quote:
(15000+15300)=30300
(15600+15900)=31500
(16200+16500)=32700
(16800+17100)=33900
(17400+17700)=35100
This actually makes sense the author should have explained this better
Posted on 1/29/15 at 7:39 pm to diddydirtyAubie
Stupid.
The difference is:
"a choice of TWO annual salaries"
vs wording it
"a choice of one of two annual salaries"
or
"a choice of one of two salaries paid annually"
Dumb.
The difference is:
"a choice of TWO annual salaries"
vs wording it
"a choice of one of two annual salaries"
or
"a choice of one of two salaries paid annually"
Dumb.
This post was edited on 1/29/15 at 7:40 pm
Page 1 of 3
Popular
Back to top
Follow SECRant for SEC Football News