You work 35 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?

Question

(1 point)
Responses

$32,000/year
$32,000/year

$18.50/hour
$18.50/hour

$30,000/year with a 5% bonus
$30,000/year with a 5% bonus

$17.50/hour and a $1,500 bonus at the end of the year

Answer 1

To compare the different payment options and determine which one will earn the most, let's break down each option:

1. $32,000/year
   This amount is straightforward; you earn $32,000.

2. $18.50/hour
   If you work 35 hours a week for 52 weeks, your annual income will be calculated as follows: \[ 35 \text{ hours/week} \times 52 \text{ weeks} \times 18.50 \text{ dollars/hour} = 35 \times 52 \times 18.50 = $34,030 \]

3. $30,000/year with a 5% bonus
   To find your total income, calculate the bonus: \[ 5% \text{ of } 30,000 = 0.05 \times 30,000 = $1,500 \] Total income would be: \[ 30,000 + 1,500 = $31,500 \]

4. $17.50/hour and a $1,500 bonus at the end of the year
   Calculate the annual income from hourly pay: \[ 35 \text{ hours/week} \times 52 \text{ weeks} \times 17.50 \text{ dollars/hour} = 35 \times 52 \times 17.50 = $31,900 \] Now add the bonus: \[ 31,900 + 1,500 = $33,400 \]

Now let's summarize both options we've calculated:

• $32,000/year
• $34,030/year (hourly at $18.50/hour)
• $31,500/year ($30,000/year with a 5% bonus)
• $33,400/year ($17.50/hour and a $1,500 bonus)

The highest amount is $34,030/year at the rate of $18.50/hour.

So the option where you will earn the most is $18.50/hour.