can u answer this

Question

6. Analyze the scenario:
Employee's hire date: 4/10/2017
Current hourly rate: $15.00 per hour
Merit increase for full year of service: 3.5%
Current date: 1/1/2018

1. What pro-rated merit increase percentage is this employee eligible to receive as of 1/1/2018?
2. What is the new hourly rate of pay?
3. Write the Excel function to show how to calculate this.

Answer 1

Excel can easily handle this. First step is to subtract the dates from each other to determine the number of days of service. Then divide by 365 to determine the portion (fraction) of the year. Next, multiply their rate by 3.5% and then multiply by the portion.