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I negotiated with my firm and received an offer of $91,000 per year.

The only issue I have was that, upon reviewing my offer, I am not sure it adds up precisely.

In my offer letter is says my salary is - "At a biweekly rate of $3,500.00 which annualizes to approximately $91,000.00"

however, $3500 * 24 = $84,000. Am I missing something here?

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    In fact, you are getting 91k for 364 days, so the annual salary is 1/365 higher than that, another $255.62 – Ross Millikan Nov 24 '20 at 5:09
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    I’m voting to close this question because it appears to be based on a minor confusion about how many weeks are in a year. – Bernhard Barker Nov 24 '20 at 9:01
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    Note: "biweekly", as the name indicates, means "once every two weeks", not "twice a month", and there are about 52 weeks in a year. – Bernhard Barker Nov 24 '20 at 11:14
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    the oxfordlearnersdictionaries.com website defines "biweekly" as "produced or happening every two weeks or twice each week". So it has two meanings :D – lucidbrot Nov 24 '20 at 13:02
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    @mattumotu Yes, biweekly has a long-standing ambiguity but I took it as every 2 weeks. OP took it as twice a month which I've never heard before... – MonkeyZeus Nov 24 '20 at 14:49
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In my offer letter is says my salary is - "At a biweekly rate of $3,500.00 which annualizes to approximately $91,000.00"

however, $3500 * 24 = $84,000. Am I missing something here?

There are 26 biweekly periods, so 26 * $3,500 = $91,000.

This is an understandable confusion. It seems to make sense to divide a monthly stated salary in half when discussing a biweekly salary. The confusion also happens when benefits like insurance premiums are stated with an annual or monthly number, but pay is biweekly.

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There are 365 days in a year*.

There are (365/7)/2 = 26.071 bi-weekly periods in a year.

$91000/26.071 = $3490.468

So yes, you are missing something here.

$3500*26.071 - $91000 = $248.50

You're getting $248.50 more per annum.

*there are approx 365.25, but let's ignore leap years..

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  • Where does the figure of $ 248.50 come from? – Neil Tarrant Nov 24 '20 at 11:53
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    I get a difference of exactly $250 when using a year with 365 days. – CodesInChaos Nov 24 '20 at 12:03
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    Yeah, $3,500 per two-week period is exactly $250 per calendar day, and a common year is 52 weeks plus one day, so you get an extra $250 per common year and an extra $500 per leap year. – Tanner Swett Nov 24 '20 at 12:11
  • In practice it is more like you get an extra $3500 every 11.2 years, isn't it? – Didier L Nov 24 '20 at 13:57
  • @CodesInChaos see added content regarding extra calculation – Lamar Latrell Nov 24 '20 at 17:07

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