16
QuizMultiple Choice

The Financial Plan

Question 16 • SHS Alt Personal Finance - 2021

Tyrone’s hourly wage is $18 and his net pay is 72% of his earnings. Tyrone spends about $1,800 on his monthly expenses. If Tyrone works 40 hours per week and has no other sources of income, what is his total monthly cash inflow? (Hint: Assume that there are 4 pay periods per month.)

Answer
A
$273.60
B
$1,080.00
C
$1,800.00
D
$2,073.60

Explanation

Tyrone earns $18 × 40 = $720 per week before deductions. His net pay is 72% of that, or $720 × 0.72 = $518.40 per pay period. With 4 pay periods per month, his monthly cash inflow is $518.40 × 4 = $2,073.60, which is choice D. His monthly expenses do not change his cash inflow.

AI-written and checked against the verified answer.

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