Problem 28 - Elementary Algebra

Question

Find the total salary that the chief operating officer of Microsoft made in 2010 . Write the answer in place value notation. Chief Operating Officer Kevin Turner was the highest paid ... \(\$ 732,500\) in salary, \(\$ 1.9\) million in bonus and \(\$ 6.6\) million in stock awards. (Source: news.cnet.com, Oct. 3, 2011)

Step-by-Step Solution

Answer

\$9,232,500

Step 1: Identify the Components of the Salary

Recognize the three different components of Kevin Turner’s 2010 salary: base salary, bonus, and stock awards.

Step 2: Base Salary

The base salary for Kevin Turner in 2010 was \( \$732,500 \).

Step 3: Bonus

The bonus received by Kevin Turner in 2010 was \( \$1,900,000 \). Make sure to convert the 1.9 million to the full numerical value.

Step 4: Stock Awards

The value of stock awards received by Kevin Turner in 2010 was \( \$6,600,000 \).

Step 5: Sum the Components

Add the base salary, bonus, and stock awards together to get the total salary: \[ 732,500 + 1,900,000 + 6,600,000 \].

Step 6: Calculate the Total

Perform the addition: \[ 732,500 + 1,900,000 + 6,600,000 = 9,232,500 \].

Step 7: Write in Place Value Notation

Express the total salary using commas to separate thousands: \( \$9,232,500 \).

Key Concepts

Place Value Notation

To understand how to write large numbers like Kevin Turner's total salary in 2010, it's important to use place value notation.

Place value notation helps break down and understand numbers better by organizing digits into groups of thousands.
For example, the number 9,232,500 is split into different sections using commas:

• 9 represents millions
• 232 represents thousands
• 500 represents units

Each group of numbers has a specific place value, making it easier to read and understand the overall number.

Knowing this, we can accurately express the total salary Kevin Turner made in 2010 using commas for clarity.

Salary Components

When discussing Kevin Turner's salary, it's essential to break down the different parts or components that made up his total earnings.

There are typically several components to a high-level executive's salary:

• Base Salary: The fixed amount of money paid to an employee before any extras such as bonuses and stock awards. For Turner, this was \( \$732,500 \).
• Bonus: Additional compensation given on top of the base salary, often based on performance. Turner's bonus was \( \$1,900,000 \) or 1.9 million dollars, which we need to convert to a full numerical value.
• Stock Awards: Compensation given as shares or stock options in the company. This can increase in value and provide significant earnings. Kevin Turner’s stock awards were worth \( \$6,600,000 \).

Adding all these components gives us his total salary for the year, which is vital for understanding his overall compensation and for accurate calculations.

Numerical Conversion

Understanding numerical conversion is crucial when dealing with large numbers, especially when some figures are given in millions or other scales.

For example, one component of Kevin Turner’s salary was \( \$1.9\) million in bonuses. To convert this into a standard numerical form:

• Recognize that 1 million is equal to 1,000,000.
• So, \(1.9 \) million is 1.9 x 1,000,000, which equals \(1,900,000 \).

Thus, converting \( \$1.9 \) million to numeric form gives \( \$1,900,000 \). This conversion ensures we can correctly add it to other salary components like the base salary and stock awards to find the total amount accurately.

Numerical conversion well-understood makes complex addition tasks simpler and ensures accuracy in financial calculations or any scenario requiring large number manipulations.