Question

Tony's hourly wage is $20 and his net pay is 75% of his earnings. Tony spends about $1,900 on his monthly expenses. If Tony works 40 hours per week and has no other sources of income, what is his net monthly cash flow?

Answer 1

The net monthly cash flow is $500

Explanation:

The computation of the net monthly cash flow is shown below:

= Earnings - expense

where,

Earnings is

= Hourly wage rate × number of hours worked per week × given percentage × number of weeks in a month

= $20 × 40 hours × 75% × 4

= $2,400

And, the monthly expense is $1,900

So, the net monthly cash flow is

= $2,400 - $1,900

= $500

hence, the net monthly cash flow is $500