I need a discussion for the following
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Discussion: Simple Interest and Simple Discount
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Simple Interest and Simple Discount
Develop a plan for the distribution of salary increases. Suppose you are employed in a local industry, and your supervisor has assigned you to distribute annual raises that must average 4% per department among 6 team members. No team member can get exactly 4%, and the raise must be at least 2% and no more than 6%.
You may establish your own criteria for distributing the raises, but you are given the years of experience and the rating on annual performance reviews for each member. A performance rating of 1 is the lowest rating possible and a rating of 5 is the highest.
Employee 1 has 4 years’ experience, a performance rating of 4, and a salary of $28,500.
Employee 2 has 3 years’ experience, a performance rating of 4, and a salary of $28,500.
Employee 3 has 10 years’ experience, a performance rating of 4, and a salary of $32,700.
Employee 4 has 7 years’ experience, a performance rating of 3, and a salary of $31,400.
Employee 5 has 15 years’ experience, a performance rating of 3, and a salary of $34,500.
Employee 6 has 12 years’ experience, a performance rating of 5, and a salary of $32,400.
Decide the amount of increase for each member.
1. Prepare your recommendations for your supervisor that includes the following:
a. A table showing the original salary, the amount of increase, the new salary, and the percent of increase for each employee.
b. Show the calculations to verify that the total amount of increases is exactly 4% of the total original salaries except for rounding discrepancies.
c. Will the percent of change also average 4%? Why or why not?
d. What other factors could have been used to calculate pay raise?
e. Many feel that pay raises should reflect seniority only? Do you agree? Why or why not?
2. The interest formula shows how interest, rate, and time are related. It gives you a way of finding one of these values if the other three values are known. Even though you try to be careful in your calculations, there will always be that occasion when you make an error and end up with an incorrect answer. You can avoid such errors by first predicting what a reasonable answer might be by estimating. As an example, if you have an 11.2% interest, you could use 11% to estimate what the correct result would be.
Search the internet to find an application of simple interest that you find interesting, that you encounter on a daily basis or that you find in your profession.
a. How could you avoid an error by using a pre-estimation? Present this application to the class and explain why you choose the example.
b. In what ways do you use estimating in your everyday life?
Include the URL for the site you used. Do not copy the text in the site verbatim. You should summarize your findings.
I need to response to Carrie that I agree and what a great post she did
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Carrie
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4/18/2014 7:06:12 AM
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Employee
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Starting Wage
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Amount of raise
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New Wage
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% of increase
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1
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$28,500
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$1,282.50
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$29,782.50
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4.5%
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2
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$28,500
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$1,282.50
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$29,782.50
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4.5%
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3
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$32,700
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$1,635
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$34,335
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5%
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4
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$31,400
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$628 (657)
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$32,028 (32,057)
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2% (2.09%)
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5
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$34,500
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$690 (719)
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$35,190 (35,219)
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2% (2.08%)
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6
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$32,400
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$1,944
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$34,344
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6%
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By adding all of the pre-raise salaries of $28,500, $28,500, $31,400, $34,500, and $32,400; which gives you a total of $188,000. To find out what the raise income should be I would take $188,000 and multiply by 4% (0.04), that amount is $7,520. When you subtract the amount of raises, $1,282.50, $1,282.50, $628, $690, and $1,944 (total of $7,462) there would be $58 dollars remaining. With the remaining $58 I would divide it in half and share it with employee 4 and employee 5.
I do not think that it is possible to be able to give the employees each different amount of raises and stay at exactly the 4% for raise. When I do an average by percentage I used 99.23% of the raise money. If I use the remaining $58 and split it between the two lowest raise amounts my average percent of raises is 24.17%.
The other factors that could have been considered for raises would be attendance, work performance, amount of overtime worked, education, training, shift worked, and working conditions would all be good things to review when considering raises. If it is a job that the employee has direct contact with the customer if management got positive or negative feedback from customer that would also be something to consider.
I do not believe that raises should go by seniority, if someone that has been with a company for 10 years is late to work a lot, calls in frequently, and does not work as hard should not get a big pay raise. If someone that is newer and wants to be at work, makes sure they are always there and takes over time whenever it is available they should be rewarded for stepping up and doing a good job.
One thing that can be used to figure out interest by estimating is the interest only mortgage. I found more of information on them here
http://www.mtgprofessor.com/tutorials2/interest_only.htm
and found how to calculate them here
https://www.nasafcu.com/interest-only-mortgage-calculator/
.
Let’s say I had a house for $300,000 with 4.5% interest for 10 years.
To estimate what my monthly payment would be I would take the cost of the house (300,000) multiply by the interest (to estimate I will do 5%) and divide by 12
300,000 *0.05= 15,000 / 12 = 1250
To figure out the real payment we do the same thing but make sure the right percentage rate is in there
300,000 * 0.045 = 13,500 / 12 = 1,125 would be the monthly payment
Some of the things that I use estimates for every day are if thing are on sale I try to estimate the new sale price, I like doing this the best when it is around 10% off. I also try and estimate the tax on an item that I buy when I bought our new television this winter I took the price of the television ($1000) multiplied by the estimate taxes (10% this is high, usually 7%) and added the numbers together. So I knew that the television was 1,000 and that 10% of that is 100. So if I had $1100 I could get the television and get some change back.
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I need to response for Alisha that I agree and what a great post she did
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Alisha
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4/18/2014 9:28:39 AM
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1.
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Original Salary
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Increase Amount
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New Salary
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Percent Increase
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Employee 1
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28,500
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1140
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29,640
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4%
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Employee 2
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28,500
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1140
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29,640
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4%
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Employee 3
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32,700
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1635
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34,335
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5%
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Employee 4
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31,400
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628
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32,028
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2%
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Employee 5
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34,500
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1035
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35,535
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3%
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Employee 6
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32,400
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1944
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34,344
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6%
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To find the percent increase:
Add the salaries: 28500+28500+32700+31400+34500+32400 = 188,000
188,000 * .04 = 7520 is 4% of the original salaries
Add the salary increases: 1440+1140+1635+628+1035+1944 = 7522
The average percentage of increase is also: 4+4+5+2+3+6 + 24
24/6 = 4%
The percent of change is going to be a 4% increase from the original salaries to the new amounts. Amount of sales and revenue could be another factor to determine an employee’s pay raise.
I definitely do not believe that a pay raise should only reflect seniority! Some people may have been working with a company for 10 years but they still do only mediocre work while an employee who’s been with the company for only 3 years works really hard to do well. Seniority should certainly be taken into account because loyalty is a big factor to consider when determining who is a great employee but it should not be the only basis for a pay raise. A great way to encourage employees to work hard and do their best to help the company move forward is to reward them. Pay raises should go to employees who are great at their job and who continuously produce the results you want to see.
2. My fiancé and I recently opened up a savings account for our honeymoon to Florida. Our deposit sum collects interest monthly as it sits in the account. Arvest.com, my bank website, shows a table of the interest rates on a savings account. For the first 6 months, our account will collect a .10% interest and in 3 years we get to collect a .30% interest. This is not a lot but its free money!
Every time I go grocery shopping, I estimate the total price of my groceries and the taxes that will be charged to my purchase. When I estimate, I normally round up in order to be safe on the price of each item. The taxes are about 9.5% so I estimate about how much that is so I don’t overspend.
https://www.arvest.com/?page=personal/accounts/rates
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princess68
mathdiscussionandresponsesunit4.docx
