Question

You work 40 hours/week for 52 weeks and are given the option to be paid hourly or to go on salary. In which situation will you earn the most?
(1 point)
Responses

$30,000/year
$30,000/year

$15.00/hour
$15.00/hour

$30,000/year with a 10% bonus
$30,000/year with a 10% bonus

$15.00/hour and a $2,000 bonus at the end of the year

Answer 1

Compute each annual amount (40 hrs/week × 52 weeks = 2,080 hrs/year):

- $30,000/year = $30,000
- $15.00/hour = 15 × 2,080 = $31,200
- $30,000/year with 10% bonus = 30,000 × 1.10 = $33,000
- $15.00/hour + $2,000 bonus = 31,200 + 2,000 = $33,200

You earn the most with $15/hour and a $2,000 year-end bonus ($33,200).