Question

A Chief Executive Officer of an investment firm receives a gross salary of $800,000 per annum.

a. What is his periodic gross payments if he is paid monthly?
Round to the nearest cent

Answer 1

To calculate the CEO's monthly gross salary, divide the annual salary of $800,000 by 12, resulting in a monthly gross salary of $66,666.67.

Step-by-step explanation:

To calculate the periodic gross payments for the Chief Executive Officer (CEO) of an investment firm, we need to divide the annual salary by the number of periods in a year. In this case, since the CEO is being paid monthly, we divide by 12 months.

Here is the step-by-step calculation:

1. Identify the annual gross salary of the CEO: $800,000.
2. Determine the number of payment periods in a year: 12 (monthly payments).
3. Divide the annual gross salary by the number of periods to find the monthly gross salary:

Monthly Gross Salary = Annual Gross Salary / Number of Periods

Monthly Gross Salary = $800,000 / 12

Monthly Gross Salary = $66,666.67 (rounded to the nearest cent)