Tamara earns $8 an hour at her job working 25 hours per week. If 22% of her paycheck goes to taxes, what is Tamara’s monthly cash inflow? (Assume this is her only source of income and that there are 4 pays per month.)
Question & Answer
Tamara earns $8 an hour at her job working 25 hours per week. If 22% of her paycheck goes to taxes, what is Tamara's monthly cash inflow?
1 Answer
Verified archiveTo calculate Tamara’s monthly cash inflow, we need to follow these steps:
- Calculate her weekly earnings:
- Tamara earns $8 per hour.
- She works 25 hours per week.
- Weekly earnings = $8/hour * 25 hours/week = $200/week.
- Calculate her monthly earnings before taxes:
- There are 4 weeks in a month.
- Monthly earnings before taxes = $200/week * 4 weeks/month = $800/month.
- Calculate the amount deducted for taxes:
- Taxes take away 22% of her paycheck.
- Tax deduction = 22% of $800 = 0.22 * $800 = $176.
- Calculate her monthly cash inflow after taxes:
- Monthly cash inflow = Monthly earnings before taxes – Tax deduction
- Monthly cash inflow = $800 – $176 = $624.
Therefore, Tamara’s monthly cash inflow is $624.