Bridgette has gotten a promotion. Her monthly salary will be $3500. Her bonus will be 1% of last year's profit,which were $500 000. In 6 months
she will receive a 5% raise. Her tax rate on earnings is 21%.
How much will Bridgette earn in the next 12 months?
(1) $48 050
(2) $49 050
(3) $47 000
(4) $49 000
(5) not enough information
Pls. help !
I do know how to solve a percent prblem; finding the base, rate, or part, as the case may be. But, in this problem i cant seem to arrive at any of the answer choices.
i think the confusion starts here: In 6 months she will receive a 5% raise.
(i understand that to mean 6(3500)(5%)=22,050
then,
Her tax rate on earnings is 21%.
( i understand that to mean: 6($3500)+ 22,050+(500 000(1%))(21%); where parentheses mean to multiply.
Finally. How much will Bridgette earn in the next 12 months.
(i understand to mean: 12 times the total found in the previous calculation.
i cant seem to arrive at any of the answer options provided.
Pls, pls help.
First, your first equation "6(3500)(5%)=22,050" is misstated. It should be 6(3500)(1.05)=22,050.
Second, it is unclear whether you are talking about gross earnings or net earnings (gross minus deductions, which would include taxes deducted).
The gross value would be "6($3500)+ 22,050+(500 000(1%)" = $48,050.
The net value would be $48,050 - .21(48,050) = $48,050 - $10,090.50 = $37959.50
If it is gross income, (1) would be correct. However, since I don't know which they mean, I would pick (5).
Third, "12 times the total found in the previous calculation" [6($3500)+ 22,050+(500 000(1%))(21%)] would be in error, because the formula indicates the annual value.
I hope this helps. Thanks for asking.
Thank you..thank you ..thank you.
i picked up your response today.
Your calculations for gross value is the correct answer.
Your calculations for net value provided the answer to another question of "payment in tax on her earnings".
Your service is appreciated.
To calculate Bridgette's earnings in the next 12 months, we need to consider the different components of her salary and bonus, as well as any raise and taxes.
1. Monthly Salary: Bridgette's monthly salary is $3,500.
Total salary for 12 months without any changes: $3,500 x 12 = $42,000.
2. Bonus: Her bonus will be 1% of last year's profit, which is $500,000.
Bonus amount: $500,000 x 1% = $5,000.
3. Raise: Bridgette will receive a 5% raise in 6 months.
Monthly raise: $3,500 x 5% = $175.
Raise for 6 months: $175 x 6 = $1,050.
4. Tax: Bridgette's tax rate on earnings is 21%.
Total tax on salary and bonus: ($42,000 + $5,000) x 21% = $9,870.
Now let's calculate her total earnings in the next 12 months:
Total earnings = (Salary + Bonus + Raise) - Tax
Total earnings = ($42,000 + $5,000 + $1,050) - $9,870
Total earnings = $48,180 - $9,870
Total earnings = $38,310
Therefore, Bridgette will earn $38,310 in the next 12 months. None of the provided options match this amount, so the correct answer is (5) not enough information.