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James Smith has worked for Perfect Transmission Installers for eight years. His annual base salary is $52,000. For overtime hours, which he has averaged as six hours per week, he receives double pay based on his per hour wage of $25. James takes four weeks of paid vacation per year. What is his monthly qualifying income?

User Messedup
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1 Answer

7 votes

Answer:

=$5,533.33

Step-by-step explanation:

James took four weeks of paid leave. It means earned his salary but missed out on overtime earnings.

His hourly pay is $25; overtime pay will be $50 per hour

Monthly qualifying income is similar to average monthly income. The term is used mostly in credit assessments.

regular monthly income for James equal to yearly pay divide by 12 months

=$52,000/12

=4,333.333

Overpay income

6 hours per week x 4 weeks per month x $50 per hour

=6 x 4 x $50

=24 x $50

=$1200

Monthly qualifying income = 4,333.33 + 1200.00

=$5,533.33

User Dmytro Danevskyi
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