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 Pay Consumer 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 CHANGES Fair Labor Standards Act New Deal Era 1935: $ : $ : $ : $ : $2.20 * Mr. P 1979: $ : $ : $ : $ : $ : $ : $ : $ : $ : $ : $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) = $ (straight time pay) This week: $8.40 x 39.5 = $ (straight time pay)

Concept Check Complete problems 1 and 2 on page x 40 = x 37 =

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 $ per week? Let “h” represent the hours: $ (straight time) = $14.40 (hourly rate) x h Solve for h: $550.00=$14.40h $14.40$14.40 (DIVIDE EACH SIDE) = h Ryan will have to work a little over 38 hours to make $550.

Concept Check Complete problems 3 and 4 on page = x h, h = hours 190 = 8.35 x h, h = hours

Guided Practice Complete problems 5-14 on page

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) ) ) ) 38 hours 25) 38 hours