Question

How much is your monthly cash inflow if you can earn $80 a week but about 20 percent is withdrawn from your check for taxes? Assume there are 4 weeks in the month. Round to the nearest hundredth.

Answer 1

The monthly cash inflow after a 20 percent tax deduction from an $80 weekly earning, assuming 4 weeks in a month, is $256.

Step-by-step explanation:

To calculate your monthly cash inflow after taxes from a weekly earning of $80 with a 20 percent tax deduction, you start by computing the weekly after-tax income and then the monthly income. First, determine the amount taken out by taxes each week by multiplying $80 by 20%, which equals $16. Subtract this amount from the weekly gross pay to find your after-tax weekly income:

$80 - $16 = $64 (after-tax weekly income)

Since there are typically 4 weeks in a month, you would then multiply the after-tax weekly income by 4 to get the monthly cash inflow:

$64 × 4 = $256 (monthly cash inflow, rounded to the nearest hundredth)

Therefore, the monthly cash inflow is $256 after accounting for the 20 percent tax on the weekly paycheck.