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Personal Finance Computing Compensation

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## Personal Finance Computing Compensation

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**Personal Finance Computing Compensation**• Key Words • Compensation • Inflation • Raise • Benefit Package • Salary**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.**Personal Finance Computing Compensation**• Materials • Projector • Computer • Student Calculator • Paper & #2 Pencil**Personal Finance**Computing Compensation**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.**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.**Computing Compensation**• We will be looking at 3 different jobs • Kindergarten Teacher $37,500 • Computer Programmer $44,700 • Automotive Mechanic $27,000**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**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**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**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**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**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**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?**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.**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**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**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**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?**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**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