Real-Life Math -- Solution
You are a payroll officer for an automotive parts manufacturer.
You are currently working out the pay for Ron, a newly hired engineer. This
is what you calculate:
1. How much money does Ron have left at
the end of the year after he has paid his taxes?
Ron's gross
income: $34,000 per year
Taxes: 20 percent of his gross income
Net
income = $34,000 - ($34,000 x 0.20)
Net income = $34,000 - $6,800
Net
income = $27,200
After taxes, Ron has $27,200.
2.
If Ron is paid once a month, what amount do you write his paycheck for (after
the taxes have been deducted)?
If he is paid once a month, he
receives 12 paychecks.
$27,200 / 12 = $2,266.67
Ron
will take home $2,266.67 each month.