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

18 x 40 = 720 per week.....720 x 4 = 2880 per month earnings

net pay = 0.72(2880) = 2073.60 <=== cash inflow.

how much he spends per month is his cash outflow.

Answer 2

The correct answer would be option D, $2073.6

Step-by-step explanation:

Hourly wage rate: $18

Net pay is 72% of earnings

Monthly Expenses: $1800

Total weekly hours worked: 40

Monthly hours worked: 40*4 = 160

Total wage= hours worked * wage rate

Total Wage = 160 * 18 = 2880

Net pay of Tyrone is 72% of his total earnings, which is calculated as follows:

Net pay of Tyrone = 72% of Total Wage

Net pay of Tyrone = .72 * 2880

Net pay of Tyrone = 2073.6