### Who should be the Boss?

A large business firm was once planning to open a new branch in a certain city, and advertised positions for three clerks. Out of a number of applicants the personnel manager selected three promising young men and addressed them in the following way : “Your salaries are to begin at the rate of $1000 per year, to be paid every half-year. If your work is satisfactory, and we keep you, your salaries will be raised.

Which would you prefer, a raise of $150 per year or a raise of $50 every half-year?” The first two of the three applicants eagerly accepted the first alternative, but the third young man, after a moment’s reflection, took the second. He was promptly put in charge of the other two. Why? Was it because the personnel manager liked his modesty and apparent willingness to save the company money?

after two years:

first two men($150) third one($50)

first 6 months increment: 0 50$

after a year: 150$ 150$(50+100)

after 18 months: 150$ 350$(150+200)

after 2 years: 450$(150+300) 750$(350+400)

thus…after 2 years first two men would be getting salary of 1450 $ while the third one would be fetching 1750 $ and this will go on…..thus he was quite a smart person…

1st (50$) 2nd(150&)

1st 6th 0 0

12 mth 300 0

18 mth 600 900

24 mth 900 900

30 mth 1200 900

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@Ronald: that’s the precise reason it’s a paradox. BTW it simply means for the first half his salary will be 500 and for the second half it will be 550 (after an increment of 50)

Presumably the second offer means that he gets a raise of $100 on his annual salary. Which is not clear from the wording!