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Tyrone's hourly wage is $18 and his net pay is 72% of his earnings. Tyrone spends about $1,800 on his monthly expenses

Updated August 15, 2024

Tyrone’s hourly wage is $18 and his net pay is 72% of his earnings. Tyrone spends about $1,800 on his monthly expenses. If Tyrone works 40 hours per week and has no other sources of income, what is his total monthly cash inflow? (Hint: Assume that there are 4 pay periods per month.)

Options:

a. $273.60
b. $1,080.00
c. $1,800.00
d. $2,073.60

2 Answers

Verified archive
AnonymousAugust 15, 2024

Correct Answer: d. $2,073.60

AnonymousAugust 15, 2024

To calculate Tyrone’s total monthly cash inflow, we can follow these steps:

  1. Calculate Tyrone’s gross weekly earnings:
    • Hourly wage = $18
    • Hours worked per week = 40
    • Gross weekly earnings = $18 * 40 = $720
  2. Calculate Tyrone’s net weekly earnings:
    • Net pay is 72% of his gross earnings.
    • Net weekly earnings = 72% of $720 = 0.72 * $720 = $518.40
  3. Calculate Tyrone’s net monthly earnings (cash inflow):
    • There are 4 pay periods in a month.
    • Monthly cash inflow = $518.40 * 4 = $2,073.60

Therefore, the correct answer is:

d. $2,073.60