8
QuizMultiple Choice

Sources of Income

Question 8 • SHS Alt Personal Finance - 2021

Desiree works 28 hours per week. She has a monthly income of $120 from investments. Desiree also plays in a band one night a week making $200. She has a total annual income of $49,696. Desiree wants to ask her boss for a raise so that next year she can have a total income of $51,880. Assuming the other incomes remain the same, how much of an hourly raise will Desiree need?

Answer
A
$1.25
B
$1.50
C
$1.75
D
$2.00

Explanation

Desiree needs to increase her annual income by $51,880 − $49,696 = $2,184. Her other income stays the same, so the raise must come from her wages. She works 28 × 52 = 1,456 hours per year, and $2,184 ÷ 1,456 = $1.50 per hour. The correct choice is $1.50.

AI-written and checked against the verified answer.

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