Solution: We are given:
Number of employees [tex]=28[/tex]
Average earning of employee [tex]\[/tex][tex]33,000[/tex] per year
The total annual payroll of company [tex]=28 \times 33000=924000[/tex]
Now the company wants to give every employee a 5% increase for next year. Therefore, the average earning of employee per year is
[tex]105\% of 33,000=1.05 \times 33,000=34,650[/tex]
The total annual payroll of company for next year [tex]34650 \times 28=970200[/tex]
Therefore, the total increase in company's annual payroll is
[tex]970200-92400=46200[/tex]
