Question

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.)

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

Answer 1

Hourly: $18 × 40 = $720 per week.
Monthly (4 weeks): $720 × 4 = $2,880 gross.
Net (72%): $2,880 × 0.72 = $2,073.60.

Answer: d. $2,073.60