Crunch the number - Employee benefits and compensation, human resources:
CRUNCH THE NUMBERS 3-8. Using Table 3.9, in which Anne Brown's annual salary is listed at the end of 2015 was $50,000 and John Williams' was $35,000. Under a merit pay system, calculate Anne's salary based on a 7 percent annual increase through the year 2020. For John, apply a 3 percent annual increase rate. What are their adjusted salaries for each year? Table 3.9 Anne's 5% 2015 $ 50,000 $ 2,500.00 2016 $ 52,500 $ 2,625.00 2017 $ 55,125.00 $ 2,756.25 2018 $ 57,881.25 $ 2,894.06 2019 $ 60,775.31 $ 3,038.77 2020 $ 63,814.08 John 5% $ 35,000.00 $ 1,750.00 $ 36,750.00 $ 1,837.50 $ 38,587.50 $ 1,929.38 $ 40,516.88 $ 2,025.84 $ 42,542.72 $ 2,127.14 $ 44,669.85 #3.8 Anne's increase is 7% and John's Increase is 3% 7% 3% John $ 35,000.00 Anne's 2015 $ 50,000.00 2016 2017 2018 2019 2020 3.9 Assume both have reached their maximum pay rate in 2015, Under the longivity system calculate longevity payments for each through 2020 using a 5% rate for each. John Anne Longevity Lump Sum 2015 $ 50,000.00 2016 $ 50,000.00 2017 $ 50,000.00 2018 $ 50,000.00 2019 $ 50,000.00 2020 $ 50,000.00 Longevity Lump Sum 2015 $ 35,000.00 2016 $ 35,000.00 2017 $ 35,000.00 2018 $ 35,000.00 2019 $ 35,000.00 2020 $ 35,000.00 Page 2 of 2 Prepared By: Under a merit pay system scenario assume the goal is to provide Anne and John with the same annual pay increase measured in dollars. It has been determined that Anne's increase will be 5%. What should the rate for John? What will the annual salaries be at the end of 2020? % 5% 2,500 $ 52,500.00 7% $ 37,500.00 Anne's 2015 $ 50,000.00 $ 2016 2017 2018 2019 2020 John 2015 $35,000.00 2016 2017 2018 2019 2020 CRUNCH THE NUMBERS 3-8. Using Table 3.9, in which Anne Brown's annual salary is listed at the end of 2015 was $50,000 and John Williams' was $35,000. Under a merit pay system, calculate Anne's salary based on a 7 percent annual increase through the year 2020. For John, apply a 3 percent annual increase rate. What are their adjusted salaries for each year? Table 3.9 Anne's 5% 2015 $ 50,000 $ 2,500.00 2016 $ 52,500 $ 2,625.00 2017 $ 55,125.00 $ 2,756.25 2018 $ 57,881.25 $ 2,894.06 2019 $ 60,775.31 $ 3,038.77 2020 $ 63,814.08 John 5% $ 35,000.00 $ 1,750.00 $ 36,750.00 $ 1,837.50 $ 38,587.50 $ 1,929.38 $ 40,516.88 $ 2,025.84 $ 42,542.72 $ 2,127.14 $ 44,669.85 #3.8 Anne's increase is 7% and John's Increase is 3% 7% 3% John $ 35,000.00 Anne's 2015 $ 50,000.00 2016 2017 2018 2019 2020 3.9 Assume both have reached their maximum pay rate in 2015, Under the longivity system calculate longevity payments for each through 2020 using a 5% rate for each. John Anne Longevity Lump Sum 2015 $ 50,000.00 2016 $ 50,000.00 2017 $ 50,000.00 2018 $ 50,000.00 2019 $ 50,000.00 2020 $ 50,000.00 Longevity Lump Sum 2015 $ 35,000.00 2016 $ 35,000.00 2017 $ 35,000.00 2018 $ 35,000.00 2019 $ 35,000.00 2020 $ 35,000.00 Page 2 of 2 Prepared By: Under a merit pay system scenario assume the goal is to provide Anne and John with the same annual pay increase measured in dollars. It has been determined that Anne's increase will be 5%. What should the rate for John? What will the annual salaries be at the end of 2020? % 5% 2,500 $ 52,500.00 7% $ 37,500.00 Anne's 2015 $ 50,000.00 $ 2016 2017 2018 2019 2020 John 2015 $35,000.00 2016 2017 2018 2019 2020
