If you received three full-time job offers, one for $12 per hour, one for $1,400 per month, and one for $26,500 per year, which job should you take if salary was your only consideration?

• A. $1,400 per month
• B. $12 per hour
• C. $26,500 per year
• D. $12 per hour and $1,400 per month are the same

Answer: (C)

When salary is the only factor, compare offers on the same time basis—annual pay. For the hourly rate, assume full-time hours (40 hours/week for 52 weeks): 12 dollars/hour × 40 × 52 = 24,960 dollars per year. For the monthly amount, multiply by 12: 1,400 dollars/month × 12 = 16,800 dollars per year. The third offer is already 26,500 dollars per year. Comparing these annual amounts shows 26,500 dollars per year is the highest, so it yields the most money over a year. Note this ignores taxes and benefits, but it’s the largest annual salary among the options.