3. Use a calculator to make a chart projecting the effects of discrimination in initial salaries offered to Blacks and Whites and annual salary increases for two equally qualified, college-educated new hires.

a. Make columns for starting salaries of $30,000 and $33,000, respectivel Assume the Black applica y for the new employees, nt earns a 4% increase per year and the White applicant earns a 6%

increapesre year, based on their performance evaluations. What are the salary differencafetser 10 years? After 20 years?

b. Make another column, based on the assumption that the White applicant receives promotions every three years and the Black applicant is promoted every five years. For promotions, assume a salary increase of an additional 10%. What are the salary differences after 10 and 20 years give the differences in initial salaries, in increases, and in promotion rates?

cc. What effects would such salary disparities have on each employee’s and the employer’s contributions to the employees’ Social Security, tax-deferred savings plans, and retirement plans?

d. Feature 4.5, “Why Pay More? Race and Sex Discrimination in New Car Pricing,” considers effects of discrimination against Blacks in car pricing. Speculate on the effects of lower initial starting sala-
. lower salary increases, and fewer promotions, combined with high prices for consumer goods, mortgages, and insurance, on a person's ability to increase wealth.