An employee’s initial annual salary is $50,000 per year and the company gives $1,000 raises each year. The annual salary needed to live in the city was $45,000 when he started his job but is increasing 5% each year.

Create an equation that models the annual salary in a given year.

S= 50,000+1,000x

Create an equation that models the annual salary needed to live in the city in a given year.

S= 45,000 (1+.05/100)^x

Use Excel to create a list of values for the annual salary, and for the annual salary needed to live in the city for years 0 – 10. Create a scatterplot with smooth lines and markers of the values. Hint: remember you can adjust your axes in Excel, it may be helpful to start the y-axis at 40000.

Analyze your findings from the graph. Is one of the values above/below the other, for which years? What does it mean for the employee if/when the lines cross?