Presentation Transcript

1. Salary and Conversions

2. Types of Income When you get a job, there are many different types of ways you can earn your paycheck. Salary – This means you get a certain amount of money each month or year, by fulfilling the requirements of your job. You still get paid for vacation and sick time. Wage – You get paid a certain amount per hour of work time. Typically, you only get paid when you work and for how long you worked. Piecework – You get paid a certain amount for each “item” you complete. Commission – You receive a % of how much you sell. Royalty – You receive a portion of the sales of something you helped create.
3. Pay Period Conversions Jobs can post pay on an hourly, daily, weekly, monthly or annual basis. Any job seeker needs to be able to convert one to the other so they know how much money they are making and so that they can compare salaries. Example – Norma has 2 job offers. She has been offered to earn $10/hour working 40 hours a week or she can earn a salary of $23,000 per year. Which should she take? There are 2 way to answer this question. 1) Convert hourly to annual earnings, or 2) Convert annual to hourly earnings. In order to solve this, you must first realize that there are 52 weeks in a year.
4. Pay Period Conversions – Part 2 $10.00 x 40 hoursx 52 weeks =$20,800 1 hour 1 week 1 year 1 year Earning $10 per hour is equivalent to earning $20,800 per year. $23,000 x 1 yearx 1 week =$11.06 1 year 52 weeks 40 hours 1 hour Earning $23,000 per year is equivalent to earning $11.06 per hour. Either method will tell you that the $23,000 per year salary is the better deal. When multiplying fractions, multiply the numerators, then multiply the denominators, then simplify. Notice that the labels alternate between top and bottom. This allows them to cancel out.
5. Overtime Pay People who work for an hourly wage often get paid “time and ½”. This means they get 50% more pay for every hour worked above 40 hours in a week. Joe gets “time and ½” for every hour worked over 40 in a week. If he typically earns $14/hour, how much will he earn if he works 50 hours this week? Total Paycheck = Regular pay hours * regular rate + OT hours * OT rate 40 hours * $14/hour + (50-40) hours * $14 (1.5) = $560 + 10 hours * $21/hour $560 + $210 = $770
6. Commission and Royalties Some people don’t earn a salary or a wage. Many salespeople earn “commission”. Commission means the salesperson gets to keep a specific percentage of whatever it is that they sell. 6% of most home sales goes to the brokers as commission. Many stock brokers earn 1% of every stock sale. Many car salespeople earn commission. A royalty is when an author, actor, etc… earns a certain percentage of the sales of their creation. Authors get to keep a certain % of their book sales. The top actors often get to keep a certain % of movie sales.
7. Commission and Royalties, Cont. Patty is a real estate broker, she gets to keep 4% of the price when she sells a house. Paycheck = Commission Rate * Total Sales How much does she earn if she sells a house for $400,000? $400,000 x .04 = $16,000 Lady Gaga gets to keep 20% of all of her music sales. If she sells $10,000,000 worth of music, how much does she earn? $10,000,000 x .2 = $2,000,000 Debra earns 5% commission on all flooring sales. How much flooring must she sell for her to earn $30,000. X * .05 = $30,000 Divide both sides of the equation by .05 $30,000 / .05 = $600,000
8. Piecework Farm worker is one of the few professions still paid on piecework. In 1999, orange pickers earned $0.70 for each 90 pound box of oranges. The fastest pickers could fill 16 90 pound boxes in an hour. How much could they earn in an hour? How much could they earn in a 40 hour week? Paycheck = quantity x piecework rate 16 x $0.70 = $11.20 per hour. $11.20 x 40 hours = $448 per hour or… 40 hours x 16 boxes / hour x $0.70 / box = $448 per hour
9. Benefits Many jobs offer “benefits” in addition to your paycheck. Some common benefits are …. Paid vacation or paid holidays Paid maternity or sick time Health insurance, disability insurance or life insurance Retirement plans and pensions These benefits have different “values” to different people, but they are all clearly worth something. Any time you seek employment, you should be aware of the employment benefits.
10. Conversions If you have ever tried to convert meters to feet, inches to miles or pesos to dollars you’ve tried to do a conversion. Conversions are an essential mathematical concept for anyone working in business, construction, planning, health care or nearly any academically skilled job imaginable. If you are a human who will buy stuff, conversion skills are essential to make sure you don’t make poor purchasing decisions.
11. Famous Conversion Errors On September 23, 1999, The Mars Climate Orbiter was attempting to enter orbit about Mars when it burned up due to incorrect altitude. The spacecraft was designed to use metric units, but the design team programmed the orbiter with English units. The entire mission cost was ~$650 million.
12. How to do a conversion 1 At school, a cup of milk costs $0.50. At a convenience store, a gallon of milk costs $2.79. Which is cheaper? To make the comparison you must first convert both costs into the same unit. A typical conversion chart will tell you… There are 4 quarts to a gallon 2 pints in a quart 2 cups in a pint. Show Conversion.
13. Answer to Conversion 1 Convert $0.50/cup to $?/gallon. $0.50 x 2 cupsx 2 pints x 4 quarts =$8.00 1 cup 1 pint 1 quart 1 gallon 1 gallon Convert $2.79/gallon to $?/cup. $2.79 x 1 gallonx 1 quart x 1 pint =$2.79 = $0.17 1 gallon 4 quarts 2 pints 2 cups 16 cups 1 cup Either way you do the conversion, buying the gallon for $2.79 is the cheaper option.
14. How to do a conversion (2) One store sells a specific carpet for $30 per square yard. Another store sells the same carpet for $3.09 per square foot. Which is cheaper? First figure out how many square feet are in a square yard. Then do conversion.
15. Answer to Conversion 2 Convert $30/sq yd to $?/sq ft. $30 x 1 sq yd=$30= $3.33 1 sq yd 9 sq ft 9 sq ft sq ft Convert $3.09/sq ft to $?/sq yd. $3.09 x 9 sq ft=$27.81 1 sq ft 1 sq yd 1 sq yd Either way the $3.09 / sq ft is cheaper.
16. How to do conversions (3) When doing conversions you are essentially multiplying your original number by 1. You are then setting up your equation so that irrelevant units cancel out. Let’s demonstrate this by figuring out how many inches are in a mile. Then figure out how many kilometers are in a foot.
17. Answer to Conversion 3 1 milex 5280 ft x 12 inches= 63,360 inches 1 mile 1 ft 1 ftx 1 mile x 1.609 km= .0003047 km 5280 ft 1 mile
18. Foreign Exchange Conversions Most countries print their own money. When traveling from one country to the next or when buying foreign goods, it is important to know the “exchange rate”. The exchange rate states how much of one currency can be purchased for one unit of another currency. For example – One US $ is worth the same as .988 Canadian $’s. If you bring 1000 US $’s to Canada, how many Canadian $’s should you get in return? $1000 US x .988 Can = $988 Canadian 1 US If you have 1000 Canadian $’s, how many US $’s should you get in return? $1000 Can x 1 US = $1012.15 US .988 Can http://www.exchangerate.com/
19. Common Foreign Currencies Most of Europe - Euro Britain - Pound Mexico - Peso Japan - Yen China - Yuan Brazil - Real