Tough progressions question..dare to answer??

lily, chary and leslie are friends. Lily works in a company with a starting pay of $2000 per month. Chary is a sales executive whose income depends solely on the commission she receives. she earns a commission of $1000 for the 1st month and this commission increases by $100 for each subsequent month. on the other hand, leslie decides to go into business. she opens a cafe and makes a profit of $100 in the 1st month. for the 1st year, her profit in each subsequent month is 50% more than that of the previous month.





in the 2nd year, Lily receives a 10% increment in his monthly pay. on the other hand, the commission received by chary is increased by $50 for each subsequent month. in addition, the profit made by leslie is reduced by 10% for each subsequent month.





(a)how much does each of them receive at the end of the 1st year?(2 methods please)





(b) what is the percentage change in their total income for the 2nd year compared to the 1st year? (comment on the answer)

Tough progressions question..dare to answer??
What a long question...





Try to make a table or chart showing the income of each person; then, you can easily compare them.





=)
Reply:Year 1:


Lily: 12 x 2000 = $24000


Chary: 12 x 1000 + 100 x (11 * 12)/2 = $18600


Leslie: 100 * [(1.5^12 - 1)/.5] = $25749 (this is an %26quot;annuity%26quot; formula)





Year 2:


Lily: 12 x 2200 = $26400; +10% over year 1 as expected.


Chary: my assumption is that the new increase is $50 rather than the $100 from year 1, so


12 x 2100 (her level from December of yr 1) + 50 *(12*13/2) = $29100; +56.45% over year 1


Leslie: Jan year 2 profit * [(.9^12 -1)/-.1] = .9 * (100*1.5^11) * formula = $55,861; +116.9% over year 1





Compounding effect of first year profit carries through for Leslie despite reeduction of year 2.


Similarly, Chary%26#039;s compounding commission increases over year 1 enhanced year 2 in spite of the commission reduction by $50/mo.



dental