Bi-weekly pay of $1,200 results in what gross monthly income?

Bi-weekly pay of $1,200 results in what gross monthly income?

• A. 2600
• B. 2400
• C. 2800
• D. 3000

Answer: (A)

Converting bi-weekly earnings to monthly gross income involves annualizing the pay and then dividing by 12. With a bi-weekly pay of 1,200, you receive 26 pay periods in a year (1,200 × 26 = 31,200). Dividing that annual amount by 12 gives 31,200 ÷ 12 = 2,600 per month. The result is 2,600 because monthly income is derived from the annual total, not simply twice per month. The other figures would stem from assuming two pay periods every month, which isn’t how bi-weekly pay calendars work.

Converting bi-weekly earnings to monthly gross income involves annualizing the pay and then dividing by 12. With a bi-weekly pay of 1,200, you receive 26 pay periods in a year (1,200 × 26 = 31,200). Dividing that annual amount by 12 gives 31,200 ÷ 12 = 2,600 per month. The result is 2,600 because monthly income is derived from the annual total, not simply twice per month. The other figures would stem from assuming two pay periods every month, which isn’t how bi-weekly pay calendars work.