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13 October, 16:59

Over the past 10 years, Lincoln's profit-sharing payments have been substantial. Maria's annual salary was $40,000 last year, and she earned a profit-sharing payment of $10,000. Maria's profit-sharing award represents approximately what percentage of her annual salary?

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  1. 13 October, 17:09
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    If she earned $10,000 over the past 10 years, then the profit-sharing award represents 2.5% of her annual salary

    But if she earned $10,000 only in one year, then the profit-sharing award represents the 25% of her annual salary

    Explanation:

    If she earned $10,000 over the past 10 years, and we suppose that all payments are equal, then each year she received $1000.

    What percentage of her annual salary ($40,000) $1000 represents?

    $1000/$40,000=0,025*100 = 2.5%

    But if she earned $10,000 in one year, then:

    $10,000/$40,000 = 0,25*100=25%
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