Real-Life Math
From your office, you can hear the faint clanging and banging coming from the company factory. The company employs many workers to produce and manufacture automobile parts.
Each of these workers earns a different salary. Each expects to be paid the correct amount, and to be paid on time. They also count on you, the payroll officer, to deduct their taxes and calculate how much they must spend every month on medical, employment insurance and other benefits.
"Everyone in our office needs to have taken some accounting courses," says Sharon Conboy, a payroll officer. "Math is a big part of this job, so accounting skills are important."
Currently, you are issuing a monthly paycheck for Ron, who is a newly hired engineer.
Ron's gross income: $34,000 per year
Taxes: 20 percent of his gross income
- How much money does Ron have left at the end of the year, after he has paid his taxes?
- If Ron is paid once a month, what amount do you write his paycheck for (after the taxes have been deducted)?