Andre Works for a Bakery as a Cake Decorator and Receives

question 24

Multiple Choice

Andre works for a bakery as a cake decorator and receives a base annual salary of $30,000 (paid weekly) as well as piece-rate pay of 25% of the retail price for any wedding cake that he decorates. His piece-rate earnings are totaled on a monthly basis and are paid on the first pay date of the following month. During the month of June, he decorated eight wedding cakes with a total retail value of $2,650. What is Andre's gross pay for the first week in July? (Do not round intermediate calculations. Round final answer to 2 decimal places.)

• A) $1,427.53
• B) $1,485.96
• C) $1,239.42
• D) $1,526.78

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Definitions:

Compounded Semi-annually

Involves the calculation and addition of interest to the principal sum twice per year.

Lump Payment

A single, one-time payment made for a significant amount instead of breaking the payment into installments.

Compounded Quarterly

Interest calculation method where the interest is added to the principal every three months or four times a year.

Amortization Period

The total time period over which a loan or a mortgage is scheduled to be paid off through regular payments that cover both principal and interest.