Question

Determine the following estimate without using a calculator. Then use a calculator to perform the computation necessary to obtain an exact answer. How reasonable isyour estimate when compared to the actual answer?A full-time employee who works 40 hours per week earns $8.50 per hour. Estimate that person's annual income. Round 52 weeks to 50 weeks per year, and round the hourly wage to the nearest dollar for the estimate. The estimate of annual income is $(Round to the nearest thousand as needed.

Answer 1

The annual income of the employee can be calculated as:

`\text{income}=(\text{price per hour)}\cdot\text{ (hours per week)}\cdot(\text{ weeks per year)}`

To estimate the income, we are going to round the price per hour to $9 per hour and the total weeks to 50 weeks. So, the estimated income is:

`E\text{stimate Income = \$9}\cdot40\cdot50=\text{ \$18,000}`

On the other hand, the actual income is:

`\text{Actual Income= \$ 8.50}\cdot40\cdot52=\text{ \$17,680}`

So, the difference between them is $320

Answer: Estimate: $18,000

Actual: $ 17,680

Difference: $320