why is it important to know how to understand and calculate your gross income?

Why is it important to know how to understand and calculate your gross income?

Employers make mistakes on paychecks.

Examples: incorrect number of hours worked, incorrect location of local taxes

How many of you have a job?

Lesson Objective: Calculate Straight Time PayConsumer Price Index

CPI Calculator

Content Vocabulary

hourly rate (wage)

A fixed amount of money for each hour worked.

Not all jobs pay by the hour.

MINIMUM WAGE CHANGESFair Labor Standards Act

New Deal Era

• 1935: $0.25• 1968: $1.15• 1970: $1.30• 1972: $1.60• 1976: $2.20 * Mr. P• 1979: $2.90• 1980: $3.10• 1981: $3.35

• 1991: $3.80• 1992: $4.25• 1997: $4.75• 1998: $5.15• 2007: $6.25• 2008: $7.15• 2009: $7.25• 2010: $7.25

Content Vocabulary

straight-time pay

(regular earnings)

straight-time pay

The total amount of money you earn for a pay period at the regular hourly rate.

Example: Shauna earns $8.40 per hour. Last week she worked 40 hours, and this week she worked 39 ½ hours. What is her straight-time pay for each

week?

• Last wk: • $8.40 (hourly rate) x 40 (hrs worked) = $336.00

(straight time pay)

• This week: • $8.40 x 39.5 = $331.80 (straight time pay)

Concept Check

• Complete problems 1 and 2 on page 97

• 7.60 x 40 = 304• 7.90 x 37 = 292.30

Example: Ryan is an accounting clerk. He earns $14.40 per hour. How many hours per week must he work if he wants to earn approximately $550.00 per

week?

• Let “h” represent the hours:• $550.00 (straight time) = $14.40 (hourly rate) x h• Solve for h:• $550.00 = $14.40h

$14.40 $14.40 (DIVIDE EACH SIDE)• 38.19 = h• Ryan will have to work a little over 38 hours to make $550.

Concept Check

• Complete problems 3 and 4 on page 98• 522 = 22.50 x h, h = 23.20 hours• 190 = 8.35 x h, h = 22.75 hours

Guided Practice

• Complete problems 5-14 on page 98• 288• 135• 486• 251.13• 452.09• 683.55• 25• 36• 25• 9.755

Lesson Closure

• Study Tip• Make sure your answer is reasonable• You would be surprised by the number of mistakes that

are made by individuals who don’t think about the final answer

• Seconds in a day– 60 seconds in a minute x 60 minutes in an hour x 24 hours – = 8,600 seconds– Correct answer 86,400 seconds in a day

Homework Solutions

• Problems 15, 18, 21, 24, 25• 15) 255• 18) 288.44• 21) 107.75• 24) 38 hours• 25) 38 hours