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Personal Finance Computing Compensation

Personal Finance Computing Compensation. Key Words Compensation Inflation Raise Benefit Package Salary. Personal Finance Computing Compensation. Abstract

emmanuel-ramos
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Personal Finance Computing Compensation

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  1. Personal Finance Computing Compensation • Key Words • Compensation • Inflation • Raise • Benefit Package • Salary

  2. Personal Finance Computing Compensation • Abstract • The student will be able to calculate salary expectations given a base salary, Inflation percentage, and raise expectation. They will also be introduced to Benefit Package verses Union Dues and what you are getting in reality.

  3. Personal Finance Computing Compensation • Materials • Projector • Computer • Student Calculator • Paper & #2 Pencil

  4. Personal Finance Computing Compensation

  5. Computing Compensation Even if you are more interested in having a career that is fascinating, offers a chance to help people, or lets you travel all over the world, earning enough money to support your lifestyle whatever it is – is still important.

  6. Computing Compensation Compensation figure or base salary and given an approximate inflation figure and an approximate raise per year figure can be calculated to give the potential employee a reasonable expectation of earnings.

  7. Computing Compensation • We will be looking at 3 different jobs • Kindergarten Teacher $37,500 • Computer Programmer $44,700 • Automotive Mechanic $27,000

  8. How much will the Kindergarten teacher make next year if she will get base salary + 3% inflation and a 2% raise. • Base Salary + 3% of the Base Salary + 2% of the Base Salary = 2nd year earnings. • How would you set this problem up? • Figure the answer

  9. How much will the Kindergarten teacher make next year if she will get base salary + 3% inflation and a 2% raise. • 37,500 + 37500 * 3% + 37500 * 2% = 2nd year earnings • 37,500 + 1,125 + 750 = 39,375 • Or Base Salary Times 105% • 37,500 * 1.05 = 39,375

  10. How much will the Computer Programmer make next year if he will get base salary + 3% inflation and a 2% raise. • Base Salary + 3% of the Base Salary + 2% of the Base Salary = 2nd year earnings. • How would you set this problem up? • Figure the answer

  11. How much will the Computer Programmer make next year if he will get base salary + 3% inflation and a 2% raise. • 44,700 + 44,700 * 3% + 44,700 * 2% = 2nd year earnings • 44,700 + 1,341 + 894 = 46,935 • Or Base Salary Times 105% • 44,700 * 1.05 = 46,935

  12. How much will the Automotive Mechanic make next year if he will get base salary + 3% inflation and a 2% raise. • Base Salary + 3% of the Base Salary + 2% of the Base Salary = 2nd year earnings. • How would you set this problem up? • Figure the answer

  13. How much will the Automotive Mechanic make next year if he will get base salary + 3% inflation and a 2% raise. • 27,000 + 27,000 * 3% + 27,000 * 2% = 2nd year earnings • 27,000 + 810 + 540 = 28,350 • Or Base Salary Times 105% • 27,000 * 1.05 = 28,350

  14. A $72,811.59 B $80,000.00 C $79,501.77 D $75,610.10 How would you find the answer? Set the problem up Calculate and give the correct answer In ten years, the Computer Programmer’s salary will be?

  15. In ten years, the Computer Programmer’s salary will be? • Multiply current salary by 1.05 to find the salary for the first year . Then multiply that salary by 1.05 to find the second year, and so on up to the tenth year.

  16. In ten years, the Computer Programmer’s salary will be? • 44,700 * 1.05 = 46,935 First year • 46,935 * 1.05 = 49,281.75 Second year • 49,281.75 * 1.05 = 51,745.83 Third year • 51,745.83 * 1.05 = 54,333.12 Fourth year • 54,333.12 * 1.05 = 57,049.77 Fifth year

  17. In ten years, the Computer Programmer’s salary will be? • 57,049.77 * 1.05 = 59,902.25 Sixth year • 59,902.25 * 1.05 = 62,897.36 Seventh yr. • 62,897.36 * 1.05 = 66,042.22 Eighth year • 66,042.22 * 1.05 = 69,344.33 Ninth year • 69,344.33 * 1.05 = 72,811.54 Tenth year

  18. In ten years, the Computer Programmer’s salary will be? • The correct answer is A $72,811.59 • His salary increased by $28,111.54

  19. An auto assembly worker receives an annual benefits package, including health insurance, tuition reimbursement, and free company-run day care, worth $4,000 a year. She has deducted from her paycheck $310 a year for union dues. How much will her total employment package be worth? • How do you calculate the answer?

  20. An auto assembly worker receives an annual benefits package, including health insurance, tuition reimbursement, and free company-run day care, worth $4,000 a year. She has deducted from her paycheck $310 a year for union dues. How much will her total employment package be worth? • Take the value of the benefit package subtract the union dues = Worth of the benefit package • 4,000 – 310 = 3,690

  21. Go on the internet and find what your job choice is currently making as a salary. • What can you expect to make next year with a 1.5% cost of living increase and a 1% raise. • What will you make in 5 years? • What will you make in the next 5 years if inflation raises to 3% and you get a 2% raise each year? • Due tomorrow = 100 points

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