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Real-Life Activities

Real-Life Math

Like most terminologists, you do not use mathematics in your daily work very often. However, you are very thankful that you studied geometry and algorithms while you were a student. You find that these mathematical skills have helped you develop logical ways of thinking and sorting information. The thinking strategies that you developed are very useful to you in your work as a terminologist.

Now you decide to work for yourself and to start your own home business. This means that you must have basic business skills and that you must be able to calculate your monthly net and gross income. (Gross income is your income before expenses. Net income is your income after your expenses.)

This month, you send out the following invoices to your clients:

  • You invoice Smith Corp. for 30 hours of work at $50 an hour.
  • You invoice Jones Inc. for 15 hours of work at $50 an hour.
  • You invoice Howe and Sons for 25 hours of work at $50 an hour.
  • You invoice the Multilingual Organization for 20 hours of work at $50 an hour, but you give them a 15 percent discount since they are a nonprofit organization and you offer reduced rates to nonprofits.
  • You invoice Whitney Foundation for 33 hours of work at $50 an hour. You also charge them $300 for travel expenses that you incurred doing research on their behalf.

Your business expenses this month are:

  • Internet expenses -- $25
  • Home office expenses -- $65
  • Travel expenses - $400
  • Telephone expenses -- $100
  • Bank charges -- $15
  • Insurance -- $145
  • Publication -- $225

What is your net income? What is your gross income?

You must pay taxes at a rate of 15 percent of your gross income. How much do you pay in taxes? How much is left after taxes?