Question

You employ 21 people making an average of $49,000 per year. You want to give every employee a 5% increase for next year. What will be the total increase in your company's annual payroll?
a) $48.000
b) $50,085
c) $51,450
d) $54,250

Answer 1

Answer:

  c)  $51,450

Step-by-step explanation:

  Current payroll:

     21 * 49000 = $1,029,000

  Payroll after 5% increase:

     1029000 * 1.05 = $1,080,450

  Difference between after increase and current payroll:

     1080450 - 1029000 = $51,450