1. A new firm loses $4000 in its first month, but its profit increases by $800 in each succeeding month for the next year. What is its profit for the year?

2. Pay raises If you are an employee, would you rather be given a raise of $2000 at the end of each year (plan I) or a raise of $600 at the end of each 6-month period (plan II)? Consider the table for an employee whose base salary is $40,000 per year (or $20,000 per 6-month period), and answer parts (a)-(g).

(a) Find the sum of the raises for plan I for the first 3 years.
(b) Find the sum of the raises for plan II for the first 3 years.
(c) Which plan is better, and by how much?
(d) Find the sum of the raises in plan I for 5 years.
(e) Find the sum of the raises in plan II for 5 years.
(f) Which plan is better, and by how much?
(g) Do you want plan I or plan II?

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Salary Received per 6-Month Period Plan I Period (months) Plan II $20,000 20,000 21,000 $20,000 20,600 21,200 0-6 6-12 12–18 21,000 18-24 21,800 22,400 24-30 22,000 30-36 22,000 23,000