The ABC Widget company paid its salaried employees each month 1/12 of their annual rate of pay. Then, on a month that began on a Sunday, they switched to paying them every other week 1/26 of their annual pay.
Alice said that works out worse for the employees, as in the first month, they'd get only 1/13 of their annual pay instead of 1/12.
Bob said "No, you're getting some of your money sooner by two weeks, more than making up for it, so that it's better for the employees."
Who is right?
In the first month, the employees would get paid 1/26 annual pay on the
second week of the month and then again on the fourth week. So
this means they get 1/13 annual pay for that month. Alice's math
is correct.
However, Bob is also correct in saying that employees will be getting
some of thier money 2 weeks sooner. There is not enough
information to quantify whether or not this makes up for the difference
in pay during the first month.
I would say Alice is correct.
My Answer
