Two employees are hired at the beginning of 2006 at the same

Question

Two employees are hired at the beginning of 2006 at the same starting salary of $62,000 per year. At the end of each calendar year each employee is given a pay rise ranging from 20 to 50%. One employeeâ€™s salary is guaranteed not to double the otherâ€™s until the beginning of which year? 

 (A) 2008 (B) 2009 (C) 2010 (D) 2011 (E) 2012

ps_dahiya · Answer

B = 2009

In all we need to find until what value of n, A = (1.2/1.5)^n will be greater than 1/2.

At n = 4 A is greater than 1/2. So until three years one employeeâ€™s salary is guaranteed not to double that of other.

HIMALAYA · Answer

2   = 62000 (1.5)^n
2 (1.2)^n = (1.5)^n
(1.5/1.2)^n = 2
(1.5/1.2)^n = 2
(1.25)^n = 2
n ln 1.25 = ln 2 
n (0.09691) = 0.301029996
n = 3.10628372

so the salary of one of the emplyoee will doubled that of the other after 3.11 years. therefore, it is guarantee that one employeeâ€™s salary wont double the otherâ€™s until the beginning of 2009 (2006+3).

kevincan · Answer

Two employees are hired at the beginning of 2006 at the same starting salary of $62,000 per year. At the end of each calendar year each employee is given a pay rise ranging from 20% to 50%. One employeeâ€™s salary is guaranteed not to double the otherâ€™s until the beginning of which year? 

 (A) 2008 (B) 2009 (C) 2010 (D) 2011 (E) 2012

BG · Answer

Hallo kevin,
May be i do not get the question but if the employees get same pay rise then there is no solution

ak_idc · Answer

I think B is the answer.

At the begining of 2009, the min salary of one can be $107,136 and max salary of another can be $209,250. At the begining of 2010 the salary can be double.

diegmat · Answer

Don't understand this question. The question isn't "What year CAN one salary double the other?", the question is "One employeeâ€™s salary is guaranteed not to double the otherâ€™s until the beginning of which year?" It could go on past the years you listed. I.e. if they get the same pay raises every year?

paddyboy · Answer

Yeah B it is.

At the end of 2009, if one employee has been getting 20% hikes only and the other has been getting 50% hikes, then the ratio b/w there salaries will be around 1.95. Next year, it exceeds 2.

Used the compound interest formula.

SunShine · Answer

C.

By the beginning of 2010, one employee salary (who gets 20% rise) will not be the double to that of the other who gets 50% rise.


Two person, A B
 2006 2007 2008 2009
A --> X --> 1.2X --> 1.2X*1.2 --> 1.2X*1.2*1.2 = 1.728X

B --> X --> 1.5X --> 1.5X*1.5 --> 1.5X*X*X = 3.375X

BY end of 2009 the salary of A is not doubled to that of B. so the answer is C. beginning of 2010

paddyboy · Answer

Thats right ! :oops:

04blackmaxx · Answer

Priyah · Answer

Answer is B.i.e 2009 since the question is "when one emp's salary is guaranteed NOT to double..."
One emp's salary is guranateed to double the other in 2010.

haas_mba07 · Answer

Answer: C. 2010

At the end of 2009 the ratio of the two salary (one getting 20% raise and the other 50%) is 172.8 : 337.xx.

After this point salary doubles.

Two employees are hired at the beginning of 2006 at the same

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