11 Questions
What is the total weekly net pay after all deductions?
Calculation required
What is the balance in the simple interest account after 3 years?
$ ext{Balance} = P(1 + rt)$
How much will the CD be worth upon maturity?
$ ext{CD worth} = P(1 + r)^n$
What is the value of the savings account after 14 years of compound interest?
Calculation required
Match the financial vocabulary terms with their correct descriptions.
i - B, ii - C, iii - D, iv - A
What is the annual gross income of someone making the Arizona minimum wage of $12.80 per hour, working full-time at 40 hours per week?
$12.80 x 40 hours/week x 52 weeks
How do you calculate the monthly gross income of an auto dealership worker with a 3% commission on each car sold, in addition to a $17,000 annual salary, selling 9 cars worth an average of $23,000 each in a month?
($23,000 x 9 cars) x 3% + $17,000
What is the monthly after-tax income of someone earning an annual salary of $52,850, considering Federal (17%), Georgia (6%), Social Security (6.2%), and Medicare (1.45%) tax rates?
$52,850 / 12 - ($52,850 / 12 x 0.17 + $52,850 / 12 x 0.06 + $52,850 / 12 x 0.062 + $52,850 / 12 x 0.0145)
If a full-time employee earns $13.80 an hour, working 40 hours per week, how much is deducted from their monthly paycheck for the company's retirement plan that costs 2.5% of the gross income?
$13.80 x 40 hours/week x 4 weeks x 0.025
How much money is deducted from the monthly paycheck of an employee who took 10 work days off for vacation, 3 days off for a family wedding, and 5 sick days, earning $21.56 per hour and working 8 hours a day?
($21.56 x 8 hours/day x (10 + 3 + 5) days) / 2
What is the net pay of an individual earning $830 per week?
$830
Study Notes
Income Calculations
- Arizona minimum wage: $12.80 per hour
- Full-time work: 40 hours per week
- Annual gross income based on Arizona minimum wage: $66,496 per year
- Monthly gross income calculation: (Annual salary / 12) + (Commission rate x Average sale value x Number of sales)
Commission and Salary
- Auto dealership sales commission: 3% of each car sale
- Average sale value: $23,000
- Typical monthly sales: 9 cars
Taxes and Income
- Federal tax rate: 17%
- Georgia state tax rate: 6%
- Social Security tax rate: 6.2%
- Medicare tax rate: 1.45%
- Monthly after-tax income calculation: (Annual salary x (1 - Tax rate)) / 12
Retirement Plans
- Company retirement plan deduction: 2.5% of gross income
- Monthly retirement plan deduction calculation: (Gross income x 2.5%) / 100
Loss of Pay
- Annual days off: 15 days
- Vacation days: 10 days
- Sick days: 5 days
- Loss of pay calculation: (Hourly rate x Hours worked per day x Number of days lost)
Net Pay
- Weekly net pay calculation: (Weekly gross pay x (1 - Tax rate)) - (Retirement plan deduction + Health insurance deduction)
Simple Interest
- Simple interest calculation: (Principal amount x Interest rate x Time)
- Interest rate: 3.5% per annum
Compound Interest
- Compound interest calculation: (Principal amount x (1 + Interest rate/n)^(n*Time))
- Interest rate: 3% per annum
- Compounding frequency: Annually
Financial Vocabulary
- Bonus: A one-time payment for exceptional performance
- Hourly Pay: Payment based on the number of hours worked
- Commission: Payment based on a percentage of sales
- Base Salary: Fixed annual payment for work performed
Test your knowledge on calculating different types of income including annual gross income and monthly gross income based on real-world scenarios with accurate and up-to-date data.
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