1. Each of you will assume that your employment is attending school at Southeast Middle for a standard week (5 days) earning 10 dollars an

hour as a pay rate. You work eight hours per day (6:45am - 2:45pm).

2. As a student you still live at home. However, you have responsibility for some of your 'extra' bills. Your phone bill is $75. Your food/snacks cost $300. Your transportation/entertainment is $225. Your clothes bill is $200.

You will project your finances for one month’s worth of income in terms of gross income (total) and net income (income with deductions).

1 answer

To project your finances for one month’s worth of income and expenses based on the information provided, we’ll break it down step by step.

Step 1: Calculate Gross Income

  1. Hourly Pay Rate: $10/hour
  2. Hours Worked Per Day: 8 hours
  3. Days Worked Per Week: 5 days

Weekly Earnings: \[ \text{Weekly Earnings} = \text{Hourly Pay} \times \text{Hours Per Day} \times \text{Days Per Week} \] \[ \text{Weekly Earnings} = 10 \times 8 \times 5 = 400 ,\text{dollars} \]

Monthly Earnings: (Assuming 4 weeks in a month) \[ \text{Monthly Earnings} = \text{Weekly Earnings} \times 4 \] \[ \text{Monthly Earnings} = 400 \times 4 = 1600 ,\text{dollars} \]

Step 2: Calculate Monthly Expenses

  1. Phone Bill: $75
  2. Food/Snacks: $300
  3. Transportation/Entertainment: $225
  4. Clothes: $200

Total Monthly Expenses: \[ \text{Total Expenses} = \text{Phone Bill} + \text{Food/Snacks} + \text{Transportation/Entertainment} + \text{Clothes} \] \[ \text{Total Expenses} = 75 + 300 + 225 + 200 = 800 ,\text{dollars} \]

Step 3: Calculate Net Income

Net Income: \[ \text{Net Income} = \text{Monthly Earnings} - \text{Total Expenses} \] \[ \text{Net Income} = 1600 - 800 = 800 ,\text{dollars} \]

Summary

  • Gross Income (Total Monthly Earnings): $1600
  • Net Income (Income After Deductions): $800
  • Total Monthly Expenses: $800

Your finances project that after covering your extra bills, you will have a net income of $800 left for savings or other expenses.