4
QuizMultiple Choice

Sources of Income

Question 4 • SHS Alt Personal Finance - 2021

Last year Frank had a total income of $58,800. He sold a house and made a profit of $27,940. He also had monthly income of $80 from investments. Assuming Frank works 25 hours per week and 52 weeks per year as an hourly employee, how much more an hour would Frank had to have earned last year in order to have a total income of $59,970?

Answer
A
$0.63
B
$0.72
C
$0.80
D
$0.90

Explanation

Frank’s house profit and investment income totaled $27,940 + ($80 × 12) = $28,900. His hourly wages were therefore $58,800 − $28,900 = $29,900, but to reach $59,970 he needs $1,170 more in wages. He works 25 × 52 = 1,300 hours per year, so the required increase is $1,170 ÷ 1,300 = $0.90 per hour, choice D.

AI-written and checked against the verified answer.

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