What is the standard formula to estimate annual salary from hourly wages?

• A. Hourly wage × hours per day × 365
• B. Hourly wage × weeks per year × 12
• C. Annual salary equals hourly wage only
• D. Hourly wage × hours per week × 52

Answer: (D)

Converting an hourly wage to an annual salary uses the amount of time you actually work over a year. The standard approach is to multiply the hourly wage by the number of hours you work in a typical week, and then multiply by 52 weeks in a year. So it’s hourly wage × hours per week × 52.

This captures the regular yearly pattern of work. For example, earning $20/hour and working 40 hours a week gives about $20 × 40 × 52 = $41,600 per year. The other options don’t fit because they either count time in days (assuming you work every day) or mix up weeks and months in a way that doesn’t reflect a standard year, and one option ignores hours worked altogether.