If the hourly wage is $18 and a 15% shift differential applies, what is the pay rate per hour?

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Multiple Choice

If the hourly wage is $18 and a 15% shift differential applies, what is the pay rate per hour?

A shift differential adds a percentage of the base wage to the pay rate. With a base hourly wage of 18 dollars, 15% of 18 is 0.15 × 18 = 2.70. Adding that to the base wage gives 18 + 2.70 = 20.70 dollars per hour. So the pay rate with the differential is 20.70. The other amounts would reflect different additional amounts (for example, 2.50 more is about 13.9%, 3.00 more is about 16.7%, and 1.80 more is 10%), not 15%.

A shift differential adds a percentage of the base wage to the pay rate. With a base hourly wage of 18 dollars, 15% of 18 is 0.15 × 18 = 2.70. Adding that to the base wage gives 18 + 2.70 = 20.70 dollars per hour. So the pay rate with the differential is 20.70. The other amounts would reflect different additional amounts (for example, 2.50 more is about 13.9%, 3.00 more is about 16.7%, and 1.80 more is 10%), not 15%.

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