Answer:
Ethan's annual salary is $103,610.
Ethan's monthly salary is $8,634.17.
Explanation:
Part (a)
A biweekly salary is paid every two weeks, resulting in 26 pay periods in a year since there are 52 weeks in a year.
To calculate Ethan's annual salary, multiply his biweekly salary by 26:
Annual Salary = Biweekly Salary × Number of Biweekly Periods in a Year
Annual Salary = $3,985 × 26
Annual Salary = $103,610
Therefore, Ethan's annual salary is $103,610.
Part (b)
A monthly salary is typically calculated as a twelfth (1/12) of the annual salary. It is based on the assumption that there are 12 months in a year. This is the standard approach for most employment arrangements and financial calculations.
Therefore, to calculate Ethan's monthly salary, we can divide his annual salary by 12:
Monthly Salary = Annual Salary ÷ Number of Months in a Year
Monthly Salary = $103,610 ÷ 12
Monthly Salary ≈ $8,634.17 (rounded to the nearest cent)
Therefore, Ethan's monthly salary is approximately $8,634.17.