Question

You employ 28 people making an average of $33,000 per year. You want to give every employee a 5% increase for next year. What will be the total increase in your company's annual payroll?

Answer 1

Solution: We are given:

Number of employees
`=28`

Average earning of employee
`\`
`33,000` per year

The total annual payroll of company
`=28 * 33000=924000`

Now the company wants to give every employee a 5% increase for next year. Therefore, the average earning of employee per year is

`105\% of 33,000=1.05 * 33,000=34,650`

The total annual payroll of company for next year
`34650 * 28=970200`

Therefore, the total increase in company's annual payroll is

`970200-92400=46200`