Question

10. Linda Stevens was recently promoted from Accounts Payable Clerk to Accounting Specialist. Previously, she earned $10.50 per hour for a standard 40-hour week. She will now be paid a biweekly salary of $1,100. How much more will Linda earn annually in her new position?

Answer 1

$6,760

Explanation:

With $10.50 per hour and 40 hour weeks.

$10.50 * 40 = $420

So Linda made $420 a week and with 52 weeks in a year.

$420 * 52 = $21,840

She made $21,840 annually at her old job.

With a bi-weekly salary she makes $1,100 every 2 weeks.

There are 52 weeks in a year, so divide that by 2 to get 26 bi-weeks thus 26 pay periods a year.

$1,100 * 26 = $28,600

or divide $1,100 in half ($1,100 / 2 = $550)

$550 * 52 = $28,600

Now find the difference by subtracting the new pay rate by the old one. (Subtract the old from the new one, if you prefer that phrasing.)

$28,600 - $21,840 = $6,760

So Linda's new job pays $6,760 more than her old one.