Question

Next year, Baldwin plans to include an additional performance bonus of 0.5% in its compensation plan. This incentive will be provided in addition to the annual raise, if productivity goals are reached. Assuming the goals are reached, how much will Baldwin pay its employees per hour?

$28.15
$29.70
$31.04
$28.29

Wages are 28.15 annual raise is 5%

Answer 1

$29.70

Step-by-step explanation:

The computation of the per hour pay is shown below:

= Wages × (1 + total raise)

where,

Wages is $28.15

And, the total raise would be

= 1 + (0.5% + 5%)

= 1 + 5.5%

= 1 + 0.055

= 1.055

Now put these values to the above formula

So, the value would equal to

= $28.15 × 1.055

= $29.70

We simply multiplied the wages by the total raise percentage