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Salary Calculations

S

slicksilver

Golden Member
I'm kinda confused on how to go about this calculation. Here's the scenario :

I've worked for company A from July 2003 to August 2006 for lets say $1000 is my monthly salary(exclude taxes, benefits and all else for this calculation). As of today(November 2008) how much should the company pay me if the annual compounding interest on the outstanding is 12%.

How can I do this calculation in excel?

Thanks!

EDIT > I haven't got a single paycheck. Assume 1% interest per month compounded every quarter.
 
Originally posted by: Cattlegod
(1.01^38) * 1000
Click to expand...

(assuming the amount owed is $1000 and the 12% interest is compounded monthly, and the 12% is the nominal interest rate and not the effective annual interest rate after compounding)

Edit: Wait, the 38 months is not right. That's the time between when he started working and when he stopped working. Assuming they started owing him when he left in August 2006, it would be 27 months.
 
Originally posted by: mugs
Originally posted by: Cattlegod
(1.01^38) * 1000
Click to expand...

(assuming the amount owed is $1000 and the 12% interest is compounded monthly, and the 12% is the nominal interest rate and not the effective annual interest rate after compounding)

Edit: Wait, the 38 months is not right. That's the time between when he started working and when he stopped working. Assuming they started owing him when he left in August 2006, it would be 27 months.
Click to expand...

No no. I was not paid for a single month for the period I worked for and now they are willing to pay my dues in all. Now how much does the company owe me if the interest is 1% per month and is compounded every quarter?

Thanks

 
not sure what you are asking...this isn't really a salary calculation it's a future value one.

Just find a future value formula for excel and compute the periods from then until now.
 
Originally posted by: rajkanneganti
Originally posted by: mugs
Originally posted by: Cattlegod
(1.01^38) * 1000
Click to expand...

(assuming the amount owed is $1000 and the 12% interest is compounded monthly, and the 12% is the nominal interest rate and not the effective annual interest rate after compounding)

Edit: Wait, the 38 months is not right. That's the time between when he started working and when he stopped working. Assuming they started owing him when he left in August 2006, it would be 27 months.
Click to expand...

No no. I was not paid for a single month for the period I worked for and now they are willing to pay my dues in all. Now how much does the company owe me if the interest is 1% per month and is compounded every quarter?

Thanks
Click to expand...

Wait...
Do you mean you weren't paid for ANY month
or
Do you mean there was ONE month for which you were not paid?

If the former...
1. WTF?
2. I assume the interest for each month would start accruing at the end of the month when you were supposed to be paid. I'm not sure if there is a simple formula for calculating that, but an Excel spreadsheet would make it pretty easy.

If the latter, and it was your last month, then use Cattlegod's formula, but substitute 27 for 38 (assuming the assumptions I stated above apply).
 
Use a financial calculator and use these values

n=12.666 (38 months/3)
pmt=3000
i=3%

FV=45,413.51

That's the value at the end of Aug, 06, you can compound the additional interest from there.
 
you worked for 38 months without pay? and you want to know the forumula to find out how much you would be owed today given that you should have been paid x dollars per month at i rate compounded 4 times a year?
 
Originally posted by: ElFenix
you worked for 38 months without pay? and you want to know the forumula to find out how much you would be owed today given that you should have been paid x dollars per month at i rate compounded 4 times a year?
Click to expand...
Bullseye. This is what I want to calculate.

 
Originally posted by: mugs
Originally posted by: rajkanneganti
Originally posted by: mugs
Originally posted by: Cattlegod
(1.01^38) * 1000
Click to expand...

(assuming the amount owed is $1000 and the 12% interest is compounded monthly, and the 12% is the nominal interest rate and not the effective annual interest rate after compounding)

Edit: Wait, the 38 months is not right. That's the time between when he started working and when he stopped working. Assuming they started owing him when he left in August 2006, it would be 27 months.
Click to expand...

No no. I was not paid for a single month for the period I worked for and now they are willing to pay my dues in all. Now how much does the company owe me if the interest is 1% per month and is compounded every quarter?

Thanks
Click to expand...

Wait...
Do you mean you weren't paid for ANY month
or
Do you mean there was ONE month for which you were not paid?

If the former...
1. WTF?
2. I assume the interest for each month would start accruing at the end of the month when you were supposed to be paid. I'm not sure if there is a simple formula for calculating that, but an Excel spreadsheet would make it pretty easy.

If the latter, and it was your last month, then use Cattlegod's formula, but substitute 27 for 38 (assuming the assumptions I stated above apply).
Click to expand...

The former is the case. It was agreed in principle that the payments will be taken care of at a later date when the company is doing better.

 
Originally posted by: rajkanneganti
Originally posted by: ElFenix
you worked for 38 months without pay? and you want to know the forumula to find out how much you would be owed today given that you should have been paid x dollars per month at i rate compounded 4 times a year?
Click to expand...
Bullseye. This is what I want to calculate.
Click to expand...
If I was working for 38 months without pay, I'm pretty sure I could have taken time out of my regular work schedule to compute what I was owed. 😀
 
Originally posted by: CycloWizard
Originally posted by: rajkanneganti
Originally posted by: ElFenix
you worked for 38 months without pay? and you want to know the forumula to find out how much you would be owed today given that you should have been paid x dollars per month at i rate compounded 4 times a year?
Click to expand...
Bullseye. This is what I want to calculate.
Click to expand...
If I was working for 38 months without pay, I'm pretty sure I could have taken time out of my regular work schedule to compute how much I was pwn'd. 😀
Click to expand...

fixed.
 
If one works for a company that is just starting up, a low salary with stock options down the road may bea reasonable option.

The OP is from India and the company covered his expenses. He gambled that the company would do better and it has. Now, he wants to cash in the "stock options".

No one here ever worked for a startup before?
 
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