Question

Alana's reaction after completing this process is the following:

"Wait a second, Sharon! I think my boss is ripping me off! I work 15 hours a week, on average, at
$11/hour. According to my receipts above, I'm spending much less per month than I'm earning,
but, as we've already established, I've only got $56 saved up from 3 years of working. What
gives? How do I file a complaint? How do I get my money back? Wait until I report this boss of
mine! I'm putting this on social media!"
Sharon can tell that Alana is angry, but she's pretty sure her boss isn't stealing money from her
5
Answer This
Do some quick math to compare how much Alana should be making per month and to
compare it to how much she's spending to determine why Alana's concerned.
Assume she is paying 20 percent in taxes - you have to deduct that to get her net pay or take home
pay.

Answer 1

Alana should be able to save $78 per month, which is greater than $56 saved up in 3 years. Her concern may not be about her boss stealing money, but there could be other factors affecting her savings.

Step-by-step explanation:

To compare how much Alana should be making per month and to compare it to how much she's spending, we need to calculate her net pay or take-home pay after deducting taxes. Assuming she is paying 20% in taxes, we can calculate her net pay as follows:

$11/hour * 15 hours/week = $165/week * 4 weeks/month = $660/month gross pay

$660/month * (1 - 0.20) = $528/month net pay

Now, let's compare her net pay to her monthly expenses:

$528/month (net pay) - $450/month (expenses) = $78/month

From the calculations, Alana should be able to save $78 per month, which is greater than $56 saved up in 3 years. Therefore, her concern may not be about her boss stealing money, but there could be other factors affecting her savings.