Question

Last year Frank had a total income of $58,800. He sold a house and made a profit of $27,940. He also had monthly income of $80 from investments. Assuming Frank works 25 hours per week and 52 weeks per year as an hourly employee, how much more an hour would Frank had to have earned last year in order to have a total income of $59,970?
a.
$0.63
b.
$0.72
c.
$0.80
d.
$0.90

Answer 1

Total needed: 59,970 − 58,800 = 1,170.

Investment income: 80 × 12 = 960. House profit = 27,940. Hours worked: 25 × 52 = 1,300.

The extra must come from hourly pay, so extra per hour = 1,170 ÷ 1,300 = 0.90.

Answer: d. $0.90