Think about different ways people are compensated for work, including salary compensation, hourly wages, and contracted compensation. Which statement best describes how salary employees are compensated? A) The amount earned by a person on salary wages is based on revenue earned by the employer. B) Salary compensation is based on how many hours are worked by an employee within a specified pay period. C) A salary is a predetermined annual compensation amount divided by the number of pay periods within a year. D) People who are compensated for their work on a salary are paid minimum wage, but also earn tips from customers.

Suppose that jim plans to borrow money for an education at texas a& m university. jim will need to borrow $25,000 at the end of each year for the next five years (total=$125,000). jim wishes his parents could pay for his education but they can’t. at least, he qualifies for government loans with a reduced interest rate while he is in school. he has a special arrangement with aggiebank to lend him the money at a subsidized rate of 1% over five years without having to make a payment until the end of the fifth year. however, at the end of the fifth year, jim agrees to pay off the loan by borrowing from longhorn bank. longhorn bank will lend him the money he needs at an annual interest rate of 6%. jim agrees to pay back the longhorn bank with 20 annual payments and the payments will be uniform (equal annual payments including principal and interest). (i) calculate how much money jim has to borrow at the end of 5 years to pay off the loan with aggiebank. a. $121,336 b. $127,525 c. $125,000 d. $102,020 e. none of the above