"Two Job Offers" Puzzle
Now assume you're so brilliant, that you get job offers usually reserved for the Mensa guys which is the 98th percentile of the current population taking the test.
You've got two offers on hand.
One pays $ 180,000 per year with an annual increment raise of $ 20,000 while the other also pays the basic $ 180,000 per year with a guaranteed $5,000 raise every six months.
you have 30 seconds to decide, which one should you take if you're not actually a schmuck deep down?
You've got two offers on hand.
One pays $ 180,000 per year with an annual increment raise of $ 20,000 while the other also pays the basic $ 180,000 per year with a guaranteed $5,000 raise every six months.
you have 30 seconds to decide, which one should you take if you're not actually a schmuck deep down?
Labels: friday special, puzzle
posted by Rajesh Lal at
12:12 PM
8 Comments:
Take the one with the annual increment raise of $20,000...
If 'annual increment raise' is meant to be $20,000 per year (either over the course of the year or in one lump sum annually), then that would be twice the annual raise you would receive with the guaranteed $5,000 ever six months.
I would take the guarantee of increasing by 5000 every 6 months, in the long run, it will overtake the annual 20k. in 3 years it will be 30k. and will still rise after.
That doesn't make any sense, though.
Unless there's something I'm missing in the wording of the sentence, it breaks down this way:
Job A: 180K/Y, 20K raise/Y
-Year 1: 180,000
-Year 2: 200,000
-Year 3: 220,000
Job B: 180K/Y, 5K raise/0.5Y
-Year 1: 185,000
-Year 2: 195,000
-Year 3: 205,000
The real answer, of course, is take either one of them because even without the bonus, it's a hundred and eighty grand a year. I would go with the one that does NOT involve choking animals with my bare hands.
ANSWER
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Will go for the SECOND JOB for the obvious fact that it pays more at any point of time may it be one year, two year or even more let's see
Now it's clear that if one worked for up to six months then both would pay the same – ie, 90,000 in all. But if one worked for six to 12 months then the second job would pay more because from the seventh month it would pay that much extra, adding up to 95,000 for the next six months.
But what about subsequently?
FOR FIRST JOB (20,000 inc, annualy)
First year : would pay 90,000 + 90,000 = 180,000;
Second Year : it will pay 100,000 + 100,000 = 200,000;
Third year : 110,000 + 110,000 = 220,000.
Total = 600,000.
Whereas for the SECOND JOB (5000 inc, 6 monthly)
First year: It would pay 90,000 + 95,000 = 185,000;
Second year: 100,000 + 105,000 = 205,000;
Third year: 110,000 + 115,000 = 225,000.
Total = 615,000
So what will you go for again ?
Beware a lot of companies DO trick people into a scam like that.
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GOT RIGHT
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ANONYMOUS GUY ABOVE
With all due respect to Rajesh who posted the puzzle, I'm sure the corporate attorneys will interpret "$5,000 raise" as an annual amount, in keeping with their offer of $180k annual pay rate. Two $5k increases = $10k annual raise.
Your answer assumes they offered two $5000 increases to be paid over the following 6 months, which is the same as two $10k annual increases. [$5k paid every 6 months = $10k every 12 months...and you're assuming you get two of those each year.]
They are really offering two $5k increases to be paid over the following year (a $5k annual raise each time). In reading the puzzle, one would naturally conclude that you will be paid $190k annually at the beginning of YR2 (after adding two $5k raises).
Therefore, to correct your math:
$20,000 annual increase:
YR1: 90,000 + 90,000 = 180,000;
YR2: 100,000 + 100,000 = 200,000;
YR3: 110,000 + 110,000 = 220,000;
Total = 600,000.
$5000 annual increase, twice each year:
YR1: 90,000 + 92,500 = 182,500;
YR2: 95,000 + 97,500 = 192,500;
YR3: 100,000 + 112,500 = 212,500;
Total = $587,500
I was definetly stumped with the answer! but i think the question clearly says, $5,000 raise every six months, which should translate to semiannual increase.
It DOES NOT says $5000 raise ANNUALLY or "$5000 annual increase, twice each year"
A "$5k increase every 6 months" doesn't say annual or anything else. If I'm free to choose what time period the $5k is for, I'll pick something much shorter than 6 months. If I am not constrained to interpret the sentances as written, then perhaps I'll decide that the $5k gets paid in every paycheck, (every month, perhaps?)
Yes, it does not say "5k annual increase", but neither does it say that the $5k gets paid over 6 months either. The question is one of intent, and the paragraphs clearly imply that you'll get only $10k more at the start of the second year, not $20k more, as your interpretation would yield.
The essense of the problem is to determine the extent to which being paid earlier outweighs getting paid more. It is clearly better to get a $20k increase every year than $10k, even if you get paid half of the $10k earlier.
In real life, you should take the $20k annual increase from the first job offer and not expect the company to pay anything higher than what was clearly written (in their minds) in the offer.
Judy and Francis, above, read the sentances properly, and got the right answer. I simply provided the math to back it up.
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