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?

Question

(1 point)
Responses

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

$17.00/hour
$17.00/hour

$32,000/year with a 10% bonus
$32,000/year with a 10% bonus

$17.00/hour and a $1,000 bonus at the end of the year
$17.00/hour and a $1,000 bonus at the end of the year

Answer 1

To determine which option will earn you the most, let's calculate the total earnings for each situation.

1. $32,000/year:

   • Total earnings = $32,000

2. $17.00/hour:

   • Weekly earnings = $17.00/hour * 40 hours/week = $680/week
   • Annual earnings = $680/week * 52 weeks = $35,360

3. $32,000/year with a 10% bonus:

   • Bonus = 10% of $32,000 = $3,200
   • Total earnings = $32,000 + $3,200 = $35,200

4. $17.00/hour and a $1,000 bonus at the end of the year:

   • Annual earnings without the bonus = $35,360 (as calculated above)
   • Total earnings = $35,360 + $1,000 = $36,360

Now, let's summarize the total earnings:

• $32,000/year → $32,000
• $17.00/hour → $35,360
• $32,000/year with a 10% bonus → $35,200
• $17.00/hour and a $1,000 bonus at the end of the year → $36,360

The option that will earn you the most is $17.00/hour and a $1,000 bonus at the end of the year, resulting in total earnings of $36,360.