Your boss proposes two different plans for giving raises. Suppose you currently earn 80000 dollars per year. In Plan 1, you earn an additional 1600 dollars each year. In Plan 2, you increase your salary by 9 percent each year. Which plan do you think is better? Check your guess by computing your annual salary after 5 years and after 10 years under both plans.

Plan 1:

After 5 years:

After 10 years:

Plan 2:

After 5 years:

After 10 years:

Hint: