Question

You work 35 hours/week for 52 weeks and are given the option to be paid hourly or to go on salary. In which situation will you earn the most?

$17.50/hour and a $1,500 bonus at the end of the year

$32,000/year

$18.50/hour

$30,000/year with a 5% bonus

Answer 1

I think $18.50 would earn you the most money.

The first choice would earn you $33,350

The second choice would earn you $32,000

The third choice would earn you $33,670

I think the last choice would earn you $31,500

Hope this helps.

Answer 2

Third plan $18.50/hour.

Explanation:

Givens

• Work 35 hours per week.
• Work for 52 weeks.

First situation.

$17.50 per hour and $1,500 bonus at the end of the year, that is, at the ends of the 52 weeks.

If you work 35 hours per week for 52 weeks, with this plan, you gain

`17.50 * 35 = \$ 612.50`

Then, after 52 weeks:
`\$612.50 * 52=\$ 31,850`

So, with the first plan, you make $31,850 + $1,500 = $33,350.

Second plan.

Just $32,000 per year. It's a little bit better than the first situation.

Third plan.

$18.50 per hour.

So, per week would be:
`18.50 * 35 = \$647.50`

After 52 weeks you make:
`\$647.50 * 52=\$33,670`

So, with the third plan, you make $33,670.

Fourth plan.

$30,000 per year with a 5% bonus, which mean

`30,000 + 0.05(30,000)=30,000+1,500=31,500`

So, with this plane you make $31,500 a year.

Therefore, as you can deduct, the best option is the third plan, $33,670 per year.