Sources of Income

Miguel paid a total of $12,000 for stock that was $8 per share. If he sold all his shares for $15,000, how much profit on each share did he make?

a) $2

Loretta's income last year was $81,300. She made $56,800 at her salaried job and had additional passive income. If Loretta earned the same amount of passive income each month for the entire year, approximately how much per month was it?

a) $2,040

Byron is a wealthy tycoon who makes his money buying and selling stocks. This is an example of _____ income.

a) capital gains

Earned income and capital gains (or "portfolio income") are acquired in different ways. Which statement describes how they are different?

b) Earned income is payment for employment, while capital gains are produced by your investments.

The table below shows the typical hours worked by employees at a company. A salaried employee makes $50,000 per year. Hourly employees get paid $20 per hour, but get $30 per hour for each hour over 40 hours. Which of the payment options would you recommend to a new employee?

b) Hourly pay. Hourly employees make more per week than salaried employees

The table below shows the typical hours worked by employees at a company. A salaried employee makes $67,000 per year. Hourly employees get paid $25 per hour, but get $37.50 per hour for each hour over 40 hours. Which of the payment options would you recommend to a new employee?

c) Salaried pay. Salaried employees make more per week than hourly employees.

Last year Frank had a total income of $58,800. He sold a house and made a profit of $27,940. He also had monthly income of $80 from investments. Assuming Frank works 25 hours per week and 52 weeks per year as an hourly employee, how much more an hour would Frank had to have earned last year in order to have a total income of $59,970?

d) $0.90

Scott earns $16.85 per hour at his job. He works 7 hours per day, 4 days per week. What is Scott's gross monthly income for 4 weeks?

d) $1,887.20

Last year Lenny had an annual earned income of $58,475. He also had passive income of $1,255, and capital gains of $2,350. What was Lenny's total gross income for the year?

d) $62,080

Mikah invented and patented a new product which sells in local department stores. This is an example of _____ income.

d) passive