You work 40 hours/week for 50 weeks and are given the option to be paid hourly or to go on salary. In which situation will you earn the most?

Question

(1 point)
Responses

$33,000/year
$33,000/year

$17.00/hour
$17.00/hour

$33,000/year with a 10% bonus
$33,000/year with a 10% bonus

$17.00/hour and a $2,000 bonus at the end of the year

Answer 1

To determine which payment option provides the highest earnings, we need to calculate the total earnings for each situation.

1. $33,000/year

   • Total = $33,000

2. $17.00/hour

   • Hours per week = 40
   • Weeks worked = 50
   • Total hours = 40 hours/week * 50 weeks = 2000 hours
   • Total earnings = $17.00/hour * 2000 hours = $34,000

3. $33,000/year with a 10% bonus

   • Bonus = 10% of $33,000 = $3,300
   • Total earnings = $33,000 + $3,300 = $36,300

4. $17.00/hour and a $2,000 bonus at the end of the year

   • Total earnings = $34,000 (from hourly wage) + $2,000 (bonus) = $36,000

Now, let's summarize the total earnings for each option:

• Option 1: $33,000
• Option 2: $34,000
• Option 3: $36,300
• Option 4: $36,000

Therefore, the option that earns the most is $33,000/year with a 10% bonus, providing a total of $36,300.