Question

Suppose you know that you need $37.500 of realized income each year to cover all of yourexpenses. You can work 40 hours per week. What is the minimum amount you shouldmake per hour to be able to pay for your expenses?

Answer 1

You need $37,500 of realized income each year to cover all of your expenses.

You can work 40 hours per week.

What is the minimum amount you should make per hour to be able to pay for your expenses?

We are given the number of hours per week so let us first find out the number of hours for the entire year.

Recall that 1 year has 52 weeks.

`40\: \frac{hours}{\text{week}}*52\: \frac{\text{week}}{\text{year}}=2080(hours)/(year)`

So there are 2080 hours in a year.

Now the hourly amount can be calculated as

`(\$37,500)/(2080\: )=\$18.03`

Therefore, the minimum amount you should make per hour is $18.03