You employ 28 people making an average of $33,000 per year. you want to give every employee a 5% increase for next year. what will be the total increase in your company's annual payroll?

Solution: We are given:

Number of employees

Average earning of employee per year

The total annual payroll of company

Now the company wants to give every employee a 5% increase for next year. Therefore, the average earning of employee per year is

The total annual payroll of company for next year

Therefore, the total increase in company's annual payroll is