Salary is a predetermined amount of pay. It is paid to the employee by the employer.

An annual salary is the monetary compensation that an employee receives in exchange of work done for a year or a period of time roughly equivalent to a year.

**Formula to calculate yearly salary.**

- We begin by calculating the number of hours worked per week and multiply the result by the hourly pay to get the weekly pay.
- Then multiply the result by 52, the number of weeks in a year.

**Example:**

An individual works for 40 hours per week, her hourly pay is $ 5. Determine the individual’s yearly salary.

We begin by calculating the weekly pay.

Therefore, her weekly pay is $ 200.

We then calculate her yearly salary.

Hence, her yearly salary is $ 10,400.