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