Question

Freddy is determining his cash flow and needs help. He works two jobs, goes to school, and is living with his parents. He makes $9 per hour at one job and works 12 hours per week. He is taxed at 10%. His second job pays him cash averaging $200 per week. He has to buy gas for his car ($80 per month), car insurance ($100 per month), eats out every day for approximately $140 per week, and no rent or utilities. School costs are $500 a year. What is Freddy's income from his first job and second job, and what is his total expenses?

a) Income: $480; Expenses: $380
b) Income: $960; Expenses: $320
c) Income: $1,080; Expenses: $680
d) Income: $1,200; Expenses: $920

Answer 1

After calculating Freddy's after-tax income for both jobs and summing up his monthly expenses, it appears none of the provided answers match exactly. The closest match, using approximate values, to Freddy's monthly income and expenses would be option (c) Income: $1,080; Expenses: $680.

Step-by-step explanation:

To determine Freddy's income from his first job and second job, as well as his total expenses, let's perform the following calculations:

• For the first job, Freddy earns $9 per hour and works 12 hours per week. Before taxes, this is $9 x 12 = $108 per week. Since he is taxed at 10%, his after-tax income is: $108 - ($108 x 10%) = $108 - $10.80 = $97.20 per week.
  
• To find the monthly income from the first job, multiply the weekly income by 4 (assuming 4 weeks in a month): $97.20 x 4 = $388.80 per month.
  
• His second job pays cash, averaging $200 per week. For a monthly income: $200 x 4 = $800 per month.
  
• The total income from both jobs is $388.80 (first job) + $800 (second job) = $1188.80 per month.
  
• To calculate annual income from the first job for completeness: $388.80 x 12 = $4665.60 annually after taxes.
  
• For expenses, Freddy has gas for his car ($80 per month), car insurance ($100 per month), eating out ($140 per week), and school costs ($500 per year).
  
• The monthly expense of eating out is $140 x 4 = $560 per month.
  
• To find monthly expenses, add: gas ($80) + insurance ($100) + eating out ($560) = $740 per month.
  
• Add the annual school cost divided by 12 to get the monthly equivalence: $500 / 12 ≈ $41.67 per month for school costs.
  
• So total monthly expenses are: $740 + $41.67 ≈ $781.67.

However, the provided options do not include our calculated values. There might be a misunderstanding in the provided data or the calculations. It's important to carefully check provided details and perform calculations correctly. If one needs to choose from the provided options considering approximate values, the closest match (though not exact) for Freddy's monthly income and expenses, based on our calculations, would be (c) Income: $1,080; Expenses: $680.