Question

In a company of only 20 employees, 10 employees make $80,000/yr, 6 employees make $150,000/yr, and the 4 highest-paid employees all make the same amount. If the average annual salary for the 20 employees is $175,000/yr, then what is the annual salary of each highest-paid employee? *

Answer 1

Average salaries = sum of salaries/number of people = 175000

hence, sum of salaries = 175000 x 20

= 3500000

Total salaries of higest paid employees = 3500000 - (80000 x 10) - (150000 x 6)

= 1800000

Annual salaray of EACH highest paid employee = 1800000/4

= 450000

Answer: Each highest paid employee earns $450,000/year