9
QuizMultiple Choice

Employee Benefits

Question 9 • POP Financial Math 26/27

An employee has an annual salary of $51,300. They receive $2,830 in health insurance and $4,600 in paid time off per year. They drive their personal vehicle for work which costs them $600 per month, but the company reimburses them $0.54 per mile for the total work miles driven. If the employee drives 36,000 miles for work for the year, what will be their total employment compensation?

Answer
A
$70,740
B
$70,970
C
$77,570
D
$78,170

Explanation

The yearly vehicle cost is $600 × 12 = $7,200, while mileage reimbursement is $0.54 × 36,000 = $19,440. Add salary and benefits, then account for the vehicle cost: $51,300 + $2,830 + $4,600 + $19,440 − $7,200 = $70,970. The total employment compensation is $70,970, choice B.

AI-written and checked against the verified answer.

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