Convert an annual salary of €32 000 to (i) monthly (ii) fortnightly (iii) weekly (iv) hourly salary (assume a 40-hour week is worked).
Solution (ii)
When dealing with money, we generally round to two decimal places, unless told otherwise.
(iii) (iv)
Worked example 2
Convert a monthly salary of €2 500 to (i) weekly and then (ii) hourly amounts. Assume it is a 40-hour week.
Solution
We cannot divide a monthly salary by four weeks, as some calendar months in the year might contain almost fi ve weeks.
(ii)
Worked example 3
Joan sells pastries and soft drinks to hotels. She is paid €1 200 per month plus a commission of 5% of her total sales. In May, Joan’s sales totalled €18 500. Calculate her total pay for May.
Solution
In some types of employment, a person will receive a basic hourly rate. However, they may also receive a bonus for working longer than the normal specifi ed hours (overtime), or for working on a weekend. The extra payment may be calculated as ‘time-and-a-half’ or ‘double time’. Time-and-a-half is the hourly rate muliplied by 1·5 and double time is the hourly rate multiplied by 2.