The McConnell family is in the process of creating a budget and need to calculate their household income. Mrs. McConnell is a math instructor at the local community college. She works full-time and is paid twice per month. After taxes and other deductions, she earns $1,560 each pay period. Mr. McConnell is an electrical engineering technician for the local power company. He works 40 hours each week, earns $25.07 per hour and is paid every other week. His taxes and deductions total $561.56 each pay period.What is the McConnell's net monthly income?

Accepted Solution

Their net monthly income is $6008.08.

We start with Mrs. McConnell.  She is paid twice monthly, so her monthly income (after taxes and deductions) is $3120.

For Mr. McConnell, we first determine how much he is paid per week.  He gets 40 hours per week and is paid 25.07/hr; therefore he makes

40(25.07) = 1002.8 per week.

He is paid every other week (about twice a month), so his check on payday (before deductions) is 1002.80(2) = 2005.60.  Taking out the deductions from his payday, his net income is 2005.60-561.56=1444.04.  This makes 2888.08 per month for him.

Together, they make 2888.08+3120 = $6008.08.