Question

Last year, James earned £1,700 per month.

This year, he's had a 3% increase in his monthly pay.
He worked 37.5 hours per week for 45 weeks in the year.
What is James' average pay per hour this year?
Give your answer to 2 dp.

Answer 1

To calculate James’ average pay per hour this year, we can follow these steps:
1. Calculate his annual pay for this year:
£1,700 per month x 12 months = £20,400 per year.
2. Apply the 3% increase in pay: £20,400 x 1.03 = £21,012 per year.
3. Calculate his weekly pay: £21,012/45 weeks = £467.60 per week.
4. Calculate his hourly pay: £467.60 per week/37.5 hours per week = £12.50 per hour.

Therefore, James’ average pay per hour this year is £12.50.

Answer 2

46.72

Explanation:

Total earnings for the year = Increased monthly pay * number of weeks worked

Total earnings for the year = £1,751 * 45 = £78,795

Total hours worked in the year = Hours worked per week * number of weeks worked

Total hours worked in the year = 37.5 * 45 = 1,687.5

Average pay per hour = Total earnings for the year / Total hours worked in the year

Average pay per hour = £78,795 / 1,687.5 ≈ £46.72 (rounded to the nearest penny)

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