Question

In 2019, the minimum wage in Arizona is $11$11 per hour. The total cost of renting a one-bedroom apartment in one city is $1410$1410 per month. Without considering any other living expenses or deductions, could a person working 4040 hours a week at the minimum wage cover the $1410$1410 per month?

a) Yes, they have $495.20 more than they need.


b) No, $1905.20 is not enough.


c) No, the total earned is $495.20.


d) Yes, they have $1905.20 more than they need.

Answer 1

a) Yes, they have $495.20 more than they need.

Explanation:

You want to know if a month's pay at the minimum wage rate of $11 per hour will cover the $1410 cost of renting a one-bedroom apartment in Arizona.

Month's pay

There are 13 weeks in 3 months, so an average of about 4.33 weeks in a month. The pay for a month at $11 per hour and 40 hours per week will be ...

($11 /h)×(40 h/wk)×(4.33 wk/mo) = $1905.20 /mo

Pay vs. Rent

The cost of the apartment is $1410 per month, so the wages exceed the rental cost by ...

$1905.20 -1410.00 = $495.20

A person could cover the rent and have $495.20 more than they need.

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Additional comment

This question specifically excludes any deductions, but the deductions for state and federal taxes in Arizona would bring the monthly take-home salary total to about $1641.35. This covers the rent, but leaves only $231.35 for all other expenses.