Question

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 1

Answer:

Total monthly cash flow = $273.60

Explanation:

Tyrone's hourly wage is $18 and his net pay is 72% of his earning.

Tyrone's spends $1,800 on his monthly expenses.

In 1 hour Tyrone's earn = 72% of 18 = $12.96

In 1 week works = 40 hours

In 1 week Tyrone's earns = 40 x 12.96 = $518.40

Cash inflow of 4 week

In 4 week Tyrone's earns = 518.40 x 4 = $2073.60

Tyrone's spends in 1 month = $1800

Tyrone's earn in 1 month = $2073.60

Net cash inflow = Income - Spend

Net cash inflow = 2073.60 - 1800

Net cash flow = $273.60

Thus, Total monthly cash inflow is $273.60

Answer 2

ANSWER - D 2073.60

NOT 273.60