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Section 2.3 Analyzing Pay
Objectives
• Analyze the value of a job based on monetary value.
• Describe the value of receiving a raise in pay.
Terms
• monetary value
• raise
Build Your Math Skills
Review these math skills to prepare for the lesson that follows.
1. Change percentages to decimals by moving the decimal two places to
the left. Example: 7.5% → 0.075
A. 6% → B. 28% →
C. 2.9% → D. 16.2% →
2. Calculate percentages of numbers. Round your answers to the nearest
cent ($0.01). Example: 6% of $1,200 = 0.06 × $1,200 = $72
A. 3% of $28,500 = B. 6.5% of $17,000 =
C. 8% of $52,300 = D. 15% of $22,715 =
Comparing Jobs
In the previous section, you calculated the value of a job. However, these
calculations only considered the monetary value of the job. Monetary value
describes what something is worth in money alone. For example, the monetary
value of a house is the amount of money for which you can sell the house. The
monetary value of a job is an important consideration when comparing jobs. To
compare the monetary value of two diff erent jobs, fi rst determine the annual
value of each using the following formula:
annual value of job = annual gross pay + total annual employee benefi ts –
job expenses
Example 2-3A
See It
Esther recently graduated with a degree in hotel and restaurant
management. She has received two job off ers. Job off er number one provides a
base salary of $52,220 with a monthly cell phone allowance of $15 and monthly
parking charges of $45. Job off er number two provides a base salary of $48,660
with a monthly cell phone allowance of $25, a monthly travel allowance of $40,
and monthly parking charges of $25. Which of the two jobs has the higher
monetary value?