Question

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.)
a.
$176
b.
$624
c.
$778
d.
$800

Answer 1

Hourly pay: $8 × 25 = $200 per week. Monthly gross (4 weeks): $200 × 4 = $800. After 22% tax: $800 × (1 − 0.22) = $800 × 0.78 = $624.

Answer: b. $624