Calculate the gross earnings per pay period (in $) for the given pay schedule. (Round your answers to two decimal places.)
| Annual Salary | Monthly | Semimonthly | Biweekly | Weekly |
|---------------|---------|-------------|----------|--------|
| $45,500 | $ [] | $ [] | $ [] | $ [] |
Answer (2)
Calculate monthly earnings by dividing the annual salary by 12: 12 $45 , 500 = $3791.67 .
Calculate semimonthly earnings by dividing the annual salary by 24: 24 $45 , 500 = $1895.83 .
Calculate biweekly earnings by dividing the annual salary by 26: 26 $45 , 500 = $1750.00 .
Calculate weekly earnings by dividing the annual salary by 52: 52 $45 , 500 = $875.00 . The answers are: Monthly: $3791.67 , Semimonthly: $1895.83 , Biweekly: $1750.00 , Weekly: $875.00
Explanation
Problem Analysis We are given an annual salary of $45,500 and need to calculate the gross earnings for monthly, semimonthly, biweekly, and weekly pay periods. We will divide the annual salary by the number of pay periods in a year for each case.
Calculating Monthly Earnings To calculate the monthly earnings, we divide the annual salary by 12: 12 $45 , 500 = $3791.666... Rounding to two decimal places, the monthly earnings are $3791.67.
Calculating Semimonthly Earnings To calculate the semimonthly earnings, we divide the annual salary by 24 (since there are two semimonthly periods per month): 24 $45 , 500 = $1895.833... Rounding to two decimal places, the semimonthly earnings are $1895.83.
Calculating Biweekly Earnings To calculate the biweekly earnings, we divide the annual salary by 26 (since there are 52 weeks in a year, and biweekly means every two weeks, so 52/2 = 26 pay periods): 26 $45 , 500 = $1750.00 The biweekly earnings are $1750.00.
Calculating Weekly Earnings To calculate the weekly earnings, we divide the annual salary by 52 (since there are 52 weeks in a year): 52 $45 , 500 = $875.00 The weekly earnings are $875.00.
Final Answer Therefore, the gross earnings per pay period are: Monthly: $3791.67 Semimonthly: $1895.83 Biweekly: $1750.00 Weekly: $875.00
Examples
Understanding how to calculate earnings for different pay periods is essential for budgeting and financial planning. For example, if you are paid biweekly and want to save a certain amount each month, you need to know how much you earn per pay period to set realistic savings goals. This type of calculation is also useful when comparing job offers with different pay frequencies to determine which one provides a better overall financial benefit. Moreover, it helps in understanding how taxes and deductions affect your net pay for each pay period.
The gross earnings for an annual salary of $45,500 are calculated to be $3,791.67 monthly, $1,895.83 semimonthly, $1,750.00 biweekly, and $875.00 weekly. Each value is obtained by dividing the annual salary by the respective number of pay periods. Proper understanding of these calculations can aid in budgeting and financial planning.
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